t is scary just how the pandemic turned everyone’s life upside down. Many investors are tempted to pull out their investments until things start to settle down. But the question is, should you give up on your investments during these unprecedented times?
Investing comes with risks. No one can accurately predict the real estate market. But we know for a fact that it continues to show resilience even during these unprecedented times. This makes real estate investment a desirable investment option during the pandemic.
More people are looking forward to buying real estate after prices plummeted. Investors, on the other hand, are holding on to their real estate investments in hopes of selling their properties at a higher price in the future. The good news is, there are things you can do to maintain and improve the profitability of your investment properties even during a crisis.
Find Ways to Reduce Your Mortgage
Chances are, you acquired a mortgage to pay for your real estate properties. Mortgage rates are at an all-time low. Even before rates start to rise, this is the perfect time to consider refinancing your mortgage.
A home loan refi enables you to lower your monthly mortgage, shorten your term or enjoy more predictable costs. You can also use this to pay off existing debts through debt consolidation. Another perk is for you to obtain funds you can use for any purpose, including putting up a down payment for another real estate investment.
Let’s say you manage to find a good lender who will refinance your loan. You can enjoy lower mortgage rates and use your savings to save for another real estate down payment. You can also use this to maintain your properties, avoid costly maintenance and repairs and retain the value of your investment properties.
Lend Cash to Other Real Estate Investors
If you are in the business of flipping houses, you already know how expensive it can get to flip one house. One won’t make much profit if they can’t have at least 20% equity after reducing all the expenses associated with the sale and renovations. When you lend cash to other investors who are willing to put in more money on your desired fixer-upper property, you can make a profit.
The great thing about lending money to investors is you can make your money work for you in exchange for an investment. You just need to find a reputable sponsor who can afford a sizable down payment. Remember not to lend more than 70% of the real estate price for best results.
As you start getting paid, you can use the money to renovate your existing investment properties. You can then slowly increase your rental price or selling the property at a higher rate.
Invest in High-Value Renovations
Even with the pandemic, renal demands manage to stay strong. Many people are looking for properties they can rent especially those that offer better privacy. If you own single-detached houses or multifamily properties, use this opportunity to invest in renovations that yield high ROI.
Focusing on such projects helps boost the value of the property. You can attract high-quality tenants who are willing to pay more in exchange for a better rental home. You can even make your properties more energy-efficient and tackle projects that are bringing down the value of your property.
Offer Virtual Open Houses and Tours
It does not matter if your properties are for rent or for sale. Due to social distancing and sheltering in place, many tenants and buyers are reluctant to go from one property to another. What you can do is to step up your marketing game.
Offer virtual open houses and tours to let tenants and buyers experience your property online. You can pre-record the tour and post it online and schedule virtual open houses with your prospective client through video calls. They can ask their questions you can engage with buyers and potential tenants and keep the tour interactive at the same time.
You can entice more buyers to check out your property in real-time. Tenants looking for a home they can rent won’t have to drive for miles just to see the property. Once they made up their mind, that is the time you can schedule in-person visits to seal the deal.
These are but a few strategies you can try to level up your real estate game. There is no point in letting go of all of your investments just because a pandemic hit the globe. Use this opportunity to improve your properties’ profitability and you can enjoy greater real estate investing success in the future.