Monday, April 20, 2020

Real Estate's Pandemic

I'm not sure if you've heard there is something going on in the news right now.  Covid19 - maybe you've heard of it. 

One thing I can say for sure about recent events, it has certainly changed things.  We're no longer doing many of the things we loved, and even some of the things we didn't love, we're no longer doing (like taxes).   

Let's break down how this is an opportunity to soar and thrive in this unknown marketplace.  I'm super excited for the opportunities.  Fundamentals don't change.  If you have a market, (supply and demand), then you can make a living and do very well.  

Fundamentally, you need to understand both sides to serve that market.  Both supply and demand.   Your house seller holds the supply, and your buyer holds the demand.  In many ways, the demand side is easier to understand, and since it's the driver for your exit strategy, I like to start there (ref: Start with the End in Mind).  

What do buyers need right now?   #1, they need a place to live.  #2, your home needs to suit their needs, #3, they need to be able to buy it, pay for it, afford it, etc.    The first two points are obvious, and they will take care of themselves as buyers self select out of the market or out of your potential pool.  In many respects, point #3 is the one you can control the most. If banks begin to pull back funding options and raise their standards for lending we will see a housing pandemic much like we saw in the past (circa 2008). This will be the perfect opportunity to dominate. Get a financial calculator and begin offering your houses with seller financing. This will put you above the rest and give you a chance to thrive.

In the next post, I'll discuss the seller side of things. What are ways in today's market, where seller financing will be your solution for success?