In life we are taught to roll with the punches, ride the high times with the low times, and enjoy everything in between. When it comes to real estate we can say every cliché out there, even if you have only been in the business for a day. The last few years, living through a pandemic, qualifies as one of those historic dark times that history will show shifted how we operate and live.
It has been a challenge, to say the least, for people all over the world. The stress of many, from losing their jobs, or being furloughed, left countless people questioning whether or not they would be able to go back to work. However, in numerous situations we are seeing that people have stepped up with creative ways to make a living and work from home.
We are seeing small business on the rise–people are now able to work from home full time, and less people are making their way back to corporate America. We are calling this “The Great Resignation.” This term identifies the hundreds of thousands of people who chose not to return to work, as they formally knew it.
Opportunity For Real Estate Investors
The time away from the office opened the eyes of many people to reevaluate their situations, thus creating a boom in small business, and far less people willing to go back to work at an office full time.
Similarly, the crash of 2008 and the Great Recession that followed, created a complete unknown as to how the world would move forward, especially in real estate. After the dust settled from the Great Recession, there was immense opportunity for real estate investors to make a fortune again. Many found themselves in a better situation than they were before. Now, as we look to rebuild in the wake of the pandemic, we have another opportunity that may well prove to be another ripple in time; history will show that dark times can turn to bright times.
Migrating Toward More Affordable Housing
As people look for more affordable housing, we see folks willing and able to migrate to smaller cities and towns that have more affordable housing and can do so due to the ability to work from home, and not have to go to the office. Many of the homes in these towns are often run down, and in need of sizable repairs, or updating; in many regards this may scare people off, as they are looking for more turnkey homes to move into.
This presents an opportunity for the real estate investor to go to these areas and do what they do best, whether it is fix and flips or BRRRR’s, there does not seem to be a slowdown in the migration to these smaller cities and towns.
If you are looking for a new way to invest, do not rule out these areas. As we move beyond our perimeter, we are seeing an influx in older dilapidated properties. Conventional loans can get you the keys, but a short-term hard money loan will not just simply get you the keys but will disperse the funds necessary to improve your property and add value.
As real estate investors we are in the business to not only make a good living, but just as important, build up the towns and communities around us, leaving it better than before. You can build a strong portfolio by going to these new areas, and you are also creating a life in which you can work from anywhere, thereby enjoying life more fully with your friends and family.
If there is one thing that teaches us best, it is history. It has taught us that even in dark times opportunity presents itself. Indeed, The Great Resignation has presented a Great Opportunity in real estate. Seize it!