Followers of our website and social media have been kept informed as to how the global pandemic is affecting real estate. In yet another update to what's going on in this time of crisis, it's been reported that up to $40 million Americans could be evicted as a result of loss of income and eventual eviction. Just last week, we spoke about the surge in evictions across the U.S. This week, as we head towards August, the numbers are going up substantially. Continue reading to see how this may affect you or a loved one, and get our take on how you can best take advantage of this as a real estate investor.
CNBC Report Calls Potential Eviction Crisis “Unprecedented”
With the moratorium expiring last Friday for all eviction proceedings for federally backed mortgages as well as tenants who obtain government assisted housing, the statistics being reported by the Urban Institute state that almost 30% of the country was under that provision and keeping people in their homes who would otherwise be evicted.
With 25 million Americans getting their unemployment checks for $600 weekly stopped by July 31, this could spell some very bad news for the U.S. economy as most of the statewide eviction moratoriums are starting to wind down.
Eviction proceedings have commenced in more than 30 states, with Illinois and Hawaii ending this week, followed by Nevada and New York in August.
It’s like nothing we’ve ever seen.
-John Pollock, coordinator of the National Coalition for a Civil Right to Counsel.
Pollock was also quoted that back in 2016 there were 2.3 million evictions, and that we could match that number in August alone with this crisis.
Over 40% of households are at risk of eviction, thanks to unemployment. There are states that will be hurt more than others. Take for example West Virginia, where roughly 60% of renters are at risk of eviction, with states like Vermont working with almost half of that number, coming in at 22%.
The opportunity for real estate investors here is to purchase properties where tenants are facing eviction. Most landlords don't want to deal with this hassle nor absorb the financial drain, so they will be willing to work out a great deal to simply exit the property and move on from the headache. That headache can be your new opportunity. Call us today to find out more details on how we take advantage of today's real estate climate and how we'll navigate the potentially rough waters ahead. Our real estate investing mentoring program is second to none, and our founder, Ryan Kuhlman, is not only a real estate mentor to Broward and Dade County, but he is the President of the National REIA which oversees all real estate investing chapters in the U.S.