While the world pandemic has changed life as we know it, there's always two sides of the coin you must look at. With every negative event that happens in our world, there is always something to take away on the positive side in terms of an opportunity. In our Fort Lauderdale based real estate company, we would like to look at this pandemic as a huge opportunity for our students to come out of this with some rock solid real estate investments.
How the Coronavirus Can Be Good for Real Estate Investors
We aren't the only ones with this opinion, as a story in The Real Deal ran that echoes our sentiment exactly. We've been covering this pandemic, and how it relates to the real estate climate, on our company blog. See the end of this article for past articles we've presented on this situation and how deals are getting done despite restrictions and unforeseen conditions.
We've looked at this opportunity from all angles, and the one we have in front of us could be greater than the one that came after the economic crisis of 2008. Look for large real estate funds to gobble up hurting hotels and distressed real estate, as there are some of them with a lot of money on the sidelines waiting for the right time to buy into something when things settle down.
According to The Real Deal article, investment firms who will most likely make a splash include Starwood Capital Group, Brookfield Asset Management, and Blackstone Group. Each of them have access to billions of dollars and will definitely be looking to make acquisitions.
Calling the bottom of this market may be the hardest thing to do in this pandemic, but with big firms throwing their money around, that should provide some stability to help the overall market, and economy, bounce back in major way for the long haul.
Further, Real Capital Analytics expects a decline sharper than the 35% we saw in the period between August 2008 and June 2010.
Perhaps the most powerful quote in The Real Deal piece is as follows:
“Our thoughts and prayers are with all of our fellow Americans and nobody wants to capitalize on anybody’s misfortune,” said Meridian Capital Group’s David Schechtman. “But I will tell you, real-estate investors — when you take the emotion out of it — many of them have been waiting for this for a decade.” [WSJ] — Kevin Sun
This is exactly what we teach in our coaching programs. You must separate the emotion from the deal and focus on making a sound investment. Our students have never had a better time to take advantage of a period that won't last long, so call us today to learn more about how you can start investing in South Florida real estate.
Read Past Coronavirus Real Estate Articles: