Now is the perfect time to be a real estate investor, as many home owners are becoming late on their payment, which makes it a certainty that short sales and foreclosures will be coming soon. A recent report on MarketWatch stated that the number has reached over 4 million in the USA.
While the number of people asking for forbearance, a topic we discussed on this earlier update to our blog, has declined, the housing industry has a long way to go to be a stable market again. This makes it an ideal time to invest in real estate and score deals on distressed properties.
Over 4.1 Million Homeowners are in Forbearance Plans
This number was provided by the Mortgage Bankers Association, and again, the numbers are slowing as the country begins to open back up, but there is a bit of uncertainty as to how long things will be open, or if a rumored second wave of the virus will approach us this fall. Many forecasts have a second, stronger wave of the COVID-19 coming just months after Summer ends. With many sporting leagues attempting to open up slowly across the world, there is a lot of pandemonium with people having nothing to do other than be around their homes, have small gatherings with friends and family, and slowly get acclimated to businesses running at 25-50% capacity, people are starting to leave their homes and support local businesses.
Here in Fort Lauderdale, our popular Las Olas area has opened back up and many of the entertainment venues are thriving. The main drag of Las Olas has little or no bar seating, but the places that do offer it are gaining many customers in an environment that has quasi social distancing measures in place. How long this will last remains to be seen, but we are hoping that things improve and that obviously a second wave of this deadly virus is just a rumor.
The latest numbers reported on May 10 showed that over 8% of mortgages were in forbearance, which means that a borrower can either make a reduced payment or skip a payment all together. The number rose slightly from the May 3 report of 7.91%. However, the number of people requesting forbearance dropped from .52% to .32% for the same period.
So What Happens Next?
We'll have to wait and see what the numbers look like in terms of cases, business survival, and how quickly the economy can get going. Either way, with many people in unfortunate situations, it's a great time to learn real estate investing. Our hands-on BREIA mentor program shows you how we flip homes for a profit as savvy investors who know what to look for. In every economy, there is money to be made. In a very uncertain, down trending economy, there is a lot more money to be made, you just have to have the skill sets to know what to look for and identify value.
Contact us today for more information!