As a kid, I heard the phrase “save for a rainy day,” every time I wanted to spend my allowance on candy. I’m sure I wasn’t alone in hearing this common statement, and boy oh boy were those adults right….

But the truth of the matter is that Americans have more debt and less cash reserves today than ever in our history.

According to studies, only 40% of Americans can afford a $1,000 emergency, and 78% of us live paycheck to paycheck. With over $14 trillion in consumer debt, it’s no wonder that many Americans have little or no cash reserves.

The recent pandemic crisis reinforced the need for Americans, and businesses, to have cash reserves for these “rainy days.”

Financial experts have recommended having a savings of at least three, and preferably, six months on hand. This would allow you to pay bills and afford your mortgage should you lose your job unexpectedly.

The same holds true for businesses…

According to a 2016 study by JP Morgan Chase, only half of all small businesses hold cash reserves to support them for 27 days. With the recent economic situation, 21% of these businesses would fail without some sort of government relief.

Is Your Business Able To Weather An Economic Storm?

As a real estate investor, you may not think cash reserves are necessary or even possible. After all, real estate is a cash-intensive investment. To purchase properties, you need cash. Any cash on hand is utilized for the next investment.

Even with no-cash down deals, properties may need to be repaired or upgraded which will require the cash you have. Seems virtually impossible to have reserves. But having a financial strategy that includes a cash reserve is critical for times like these.

Many real estate investors have the mindset that their investments are separate from each other. In reality, they should see themselves as a Real Estate Investment Company with a portfolio of properties. And like all companies, real estate investment firms, need cash and cash equivalents to be sustainable during tough economic times.

Experts suggest having 5-10% of your assets in cash or cash equivalents. As your portfolio grows, your risk will be diluted by being spread across more properties. Your cash percentage could then drop slightly, though you should aim to cover basic expenses for a period of three to six months.

If you’re having trouble building this type of emergency fund, then I highly recommend you shift your real estate investment strategy to wholesaling. Wholesaling is a strategy we love here at RealEstateInvestor.com since it mitigates your risk as an investor, and the barrier to entry is much less than purchasing a property outright.

We help real estate investors build successful and sustainable businesses around wholesaling all the time.

Don’t take my word for it, read their stories here: 

How REIgnyte Managed Services Helped This Couple Scale from 2 Deals to 23 Deals in 7 Months.

Real Estate Opportunities Explode For Young Investors: How RealEstateInvestor.com Helped This 21 Year Old Launch A Successful Real Estate Investing Business Around Wholesaling.

By working a wholesaling strategy, you can set aside a percentage of each deal to build up the cash reserves necessary to be prepared for economic storms.

But first, let’s finish talking about building your cash reserves…

Where Should You Start When Trying To Build Cash Reserves?

So now that you understand the importance of building cash reserves, where do you start?

The idea of starting from nothing can seem daunting. Saving can be difficult for many people. To be successful, you must be willing to defer gratification.

What does that mean?

It means you don’t buy that sports car or take that exotic island vacation. Resist the temptation to reward yourself and learn to live frugally.

Imagine your employer gave you a $5,000 raise. If you were living a comfortable lifestyle before this pay increase, there’s no need to change anything. Skip the expensive jewelry and designer suits. Save your extra earnings and you’ll be on your way to having cash reserves.

If you don’t have any savings today, you must first start with an emergency fund. Save $1,000 to $2,000. Then pay off bad debt such as high-interest credit cards that drain your income each month and give you nothing in return.

Lastly, start saving and investing. Once you have some cash saved, consider investing in money markets or other cash equivalents that you can liquidate quickly when needed, yet still earn you a small return.

If financial freedom is a top priority for you….

Financial Freedom is incredibly important to me, and as such, I always advocate real estate investors building their emergency funds first before starting to invest in real estate.

When it comes to putting the cash into building your business, there’s no getting around the need to invest in things like marketing, lead generation, and the systems and services you need to operate your business wisely.

But, remember being cash poor at the beginning of your investment career is expected, but it should not be a permanent way of life.

Recognize that establishing cash reserves may take time. But you need to be proactive with your financial decisions and follow your business plan

If you do this and act wisely, soon you will have the reserves needed for that next rainy day.

Seems hard to believe the global economy could be shut down overnight…Yet it happened.

There’s no wonder then why people are speculating about how the future will look when it comes to anything related to the housing market. We recently weighed in on this in our article titled— Should You Invest In Real Estate Post Coronavirus? 

Today, we want to look at what the future of the ibuyer movement looks like after Covid-19, and how this will impact real estate agents and investors alike. 

Let’s dive in…

The Growing iBuyer Movement

When iBuying companies like Redfin and Zillow ceased purchasing homes a few months back, we weren’t surprised. Suddenly they had excess inventory on hand and the market had fewer buyers. Home sales took a downturn. So did home listings. Consumer confidence had fallen to the lowest level since 2011, according to Fannie Mae.

Even though iBuyers represented a small portion of the real-estate market, that share has been growing steadily over the past several years. 

While some real estate authorities perceive the iBuyer movement to be negative, we prefer to look at it as a tide shifter. Especially when it comes to the perceived value of below market cash offers. 

With the rise of the iBuyer movement, homeowners have been becoming steadily more receptive to the value that instant cash offers provides them with over that of a traditional listing. 

There are many benefits to taking a below market cash offer, including flexible moving terms, a guaranteed sale, not having to make necessary repairs, and not having to maintain a show-ready home during the selling period—or during a pandemic—to name just a few.

Sound familiar? 

If these benefits ring a bell or if they sound familiar it’s because these are the same benefits that real estate investors like us have been offering sellers for years. The iBuyer movement is simply making this more recognized on a broader scale, bringing many of the traditional sellers into the fold, whereas real estate investors typically are in the business of helping sellers in need.

With that all said, the coronavirus pandemic is still hanging around, and talks of second and third waves remain in the headlines. While it’s still a bit shaky for many, people are still moving and that means the iBuyers are back in play.

iBuying Firm’s Return To The Market In Time For The Summer.

It’s the summer and the buying and selling season has already restarted despite the ever-shifting societal climate. Alongside it, the big iBuyer firms have resumed their programs. Which is a reminder that if you’re not in the game right now, you need to jump back in asap. 

There’s no guarantee when it comes to the speed of economic recovery in our nation, but we do see signs that Americans are re-entering the housing market. Buyer demand is on the rise and with inventory levels down 25% year-after-year, many real estate entrepreneurs, including the big iBuyers are ready to take a risk again. 

While listings are down, buyer inquiries are still going strong despite the coronavirus sticking around. In fact, buyers now have more online tools than ever to help them tour homes, making the starting point easier than ever before. And since the big firms are back in play, that’s further proof that buyer demand is likely going to continue it’s rise…

What’s Driving Housing Demand Right Now? 

Owning a home has been the American dream since well before the iconic jingle, “baseball, hot dogs, and apple pie.” Many people aspire to homeownership, but not everyone can afford it. The recent pandemic and rise in unemployment may make ownership unattainable especially for those most impacted.

Experts agree there has already been an affordability issue. Markets like New York and San Francisco are expensive, making ownership virtually impossible for the working class.

As a result, we have already seen a movement out of major cities.

Besides consumer wariness about living in close quarters, the coronavirus outbreak has seen an acceptance in employees working-from-home.

Employers that previously refused this flexibility were forced into allowing it when offices were shut down. Now they are seeing productivity from employees without having to lease office space. If employers continue to allow staff to work-from-home, employees will no longer need to live in expensive cities and pay premium prices for housing.

With people moving to less expensive markets, housing demand will increase.

What about secondary markets like vacation rentals?

This market has already been significantly impacted. We talk about the impact of the coronavirus pandemic on vacation rental owners in this article here.

In short, the vacation rental market was largely built on the ability for owners to have someone else pay their mortgage(s). Websites like Airbnb and VRBO put renters in touch with owners, making ownership desirable. But when travel halted, investors without reserves to weather the storm, were immediately affected. These owners may be looking to liquidate. They could easily look to iBuying websites to help them unload properties fast.

Does this mean that iBuying websites will be more popular post pandemic?

With fewer in-person interactions, you could reasonably assume iBuying options would become more popular than the traditional selling process. But according to some experts and some of the recent moves by big iBuying Firms, that may not be the case…

While homeowners may be more anxious to sell, especially if they were financially impacted by the pandemic, offers from iBuying firms may not be as high as in the past. This might make those lower offers less appealing to sellers under normal circumstances, unless they have a personal need to move out quickly. 

In this case, iBuyer Firms could be looking at fewer sellers overall, especially if they were targeting the average homeowner. 

This doesn’t mean they’re in trouble though. Like most big businesses, they have an uncanny way of adapting to new market changes…

How The Big iBuyers Are Adapting To A Post Coronavirus Market.

Companies are in business to make a profit. If the market poses a risk to investors who plan to resell quickly, these projected costs will need to be calculated into their offer.

According to Redfin CEO Glenn Kelman, homeowners could see lower offers from iBuying firms. Planning for a greater margin of error than the pre-coronavirus era is necessary, and iBuyers will be more cautious. It’s one thing to take a loss on a single home but having hundreds of properties in the same market could be financially detrimental.

But, lower offers aren’t the only expected change…

These iBuying firms may be more selective in what they opt to purchase as well. 

Properties with extensive repair needs may be passed up. Structural problems, asbestos, or mold could take months to be fixed before the property could be resold. This not only adds costs for maintenance, but leaves the iBuyer firm vulnerable to the market when the property is finally ready to be listed. This is not a risk iBuying firms will likely be willing to take moving forward.

That’s not all… 

There’s another significant move that some of the biggest iBuyers are making in this post pandemic marketplace…

Two Big iBuyers Launched Traditional Brokerage Listing Services…

While many iBuyers are shifting their strategies and instituting new features in this ever changing marketplace, two of the biggest iBuying firms launched traditional brokerage listing services recently. This has been a pretty lowkey move and a telling sign of what’s in store…

While it hasn’t gained a whole lot of attention, both Offerpad and Opendoor launched their own traditional brokerage listing services recently. 

You might be wondering why these big firms would take the traditional route…

By taking measures to merge their digital services with a traditional service, these big iBuying firms are able to cover even more ground in the real estate marketplace. And now that they can make any of the moves that traditional real estate brokers can make, their competitive advantage is only going to keep on growing. 

What does this mean to you? 

More Than Ever, Real Estate Agents Need To Compete Or Be Eaten Alive By These Mega iBuyers…

We’ve seen it happen time and time again. From big box stores to online mega retailers, the road to growing and dominating a competitive marketplace can become a battlefield. But you don’t have to be a casualty of war when it comes to playing the real estate game. 

How do small businesses and individual entrepreneurs maintain footing when the giants start paving over everyone in their way? 

They fight back. In this case, they stay relevant and stay ahead of the curve. 

That Means You Need To Adapt Your Strategy.

As iBuyers move into the traditional world, real estate agents are going to have to fight even harder for their share of the marketplace. Our Managed Service solution can help you stay ahead of the curve. 

We’ve helped real estate brokers and agents build and manage their iBuying businesses without having to sacrifice their time or their traditional business model. In fact, we can even help realtors get more qualified traditional leads in the door. 

Our solutions can enhance your business, give you diversified revenue and massive leverage, and help you find freedom in your business. All without having to hire a single person. 

Sounds too good to be true? Let us prove it.

More than ever you have to stay one step ahead and keep your eyes open to opportunities. We’ve helped powerhouse real estate agents and brokers like Erik Hatch of Hatch Realty and Jeff Cohn of kwELITE with their iBuying platforms. And we want to help you. 

Learn, Take Action, Adapt, and Succeed. 

If you want to learn more about the iBuyer movement and the value of adding a “done for you” iBuyer platform to your real estate business, we invite youto read this interview with Erik Hatch about offering sellers a first class selling experience, and this interview with Jeff Cohn on why real estate agents should be in the business of offering solutions. 

At the end of the day…

The big iBuyer firms are in full swing AND they’re adapting.

Munish also credits his wife with introducing him to RealEstateInvestor.com when a position opened that was the perfect fit for him. After several lengthy interviews, including an hour long interview with founder Gary Boomershine, the team agreed with Shimpy, Munish was a perfect fit.

An offer was made and the rest is history. 

Life Of A Team Member Working With RealEstateInvestor.com

Working with like-minded individuals is important to Munish who is just one member of the RealEstateInvestor.com team located in India. Though there is an office in New Delhi, Munish mostly works from home. It allows him to be more productive and has given him the flexibility to spend extra time with family, including his newborn daughter that he affectionately calls Cookie.

Being part of a team is critical, according to Munish who is responsible for escalation and client retention. He admits to spending considerable time each day on calls with his team. Munish feels it is important to connect with people. He’s managed teams of up to 100 associates, so you could say he’s a bit of a “people person.”

Everybody has a story. – Munish Gaur shares about why he loves helping people. 

Teams composed of people with different backgrounds teach us many things. Everyone is different. They are different types of people with different cultures, and even different kinds of food. This diversity helps individuals learn and see other viewpoints. Munish finds this fascinating and part of why he loves working with our company.

There’s a lot that one can learn from working in teams. Everyone comes from different backgrounds and diverse cultures. If we keep our ears and eyes open, we can actually learn and be a better self. – Munish Gaur shares about the importance of diversity in company culture.

What Munish Wishes Every Real Estate Investor Knew…

Relying on your RealEstateInvestor.com team to help you learn and grow your business is key. However, according to Munish, not all members take advantage of all of the tools offered.

Training is one of the things that Munish believes sets RealEstateInvestor.com apart from many of the other companies on the market today. This includes the free training we provide on our Real Estate Investor Facebook Page and through our REI Huddle Podcast.

With the ability to have free access to so many resources, including experts who are making 7-figures in real estate today, in this market, real estate entrepreneurs have the keys to growing faster, better, and smarter businesses easily accessible at their fingertips.

The Importance Of Attending Live Webinars and Training Events.

Munish is actually our behind the scenes guy on all of our live training webinars that we offer, so he sees the value being shared consistently during these events. He pointed out that while many of our free training webinars and Q&A’s are recorded for convenience, nothing beats being on the webinar live.

This is something he’s very passionate about, especially when it comes to our Members Only training events. These are recorded and always uploaded inside our members’ portals, but he feels like real estate entrepreneurs should utilize the live training sessions much more often than they do.

People have paid for this program and they should be attending the live session and asking live questions to get the most out of it… Though they can listen to a recording later in many cases, nothing beats the live sessions. – Munish Gaur

Entrepreneurs Can Benefit From Their Peers.

Besides being able to ask questions to experts during our live calls and webinars, members have an opportunity to share their experiences with the team and learn from other members’ stories, too. The more members actively participating, the more fruitful for all parties. Think Mastermind or Meetup Groups, but on an even more close knit level. There’s so much that we can learn from our peers around the nation who are using the same tools and services to find success in their businesses.

Not only are performance or tech coaches there to teach, they are there to share situations… I could share something or the person that actually lived that situation, could… and help each other. That’s how it should work. That they help each other. The more people we have, the merrier.– Munish Gaur

Munish stressed the importance of learning from one another’s experiences and would like to see members make the most out of the program, and the many benefits we have to offer real estate investors and agents.

Curiosity and Wonder Are Top Tier Strengths We Look For In Our Team Members.

Munish was exposed to all kinds of processes during his career, from development of technology as part of IT teams to how people used the software created. He did rigorous testing on platforms and enjoyed seeing how backend coding done in one corner of the world could handle worldwide transactions.

His experience opened positions and projects where he worked directly with various levels of management and executive personnel.

You can talk to anybody if you know what you need to ask. – Munish Gaur

Don’t be afraid to ask questions.

Munish admits to being as curious as a child and asking many questions throughout his entire life. As a project manager, he spoke with executive level managers regularly. It gave him a solid foundation to ask questions regardless of who he was talking to.

I asked the right questions at the right time. It’s a habit. It doesn’t matter who you are sitting with… CEO or an agent, if you need to ask questions, you should. – Munish Gaur shared.

Munish is a great example of having curiosity and wonder, two of the values we very much look for when it comes to seeking members to join our innovative team at RealEstateInvestor.com.

The Importance Of Service And Having A Willingness To Help.

This holds true with RealEstateInvestor.com as well. Members are encouraged to ask questions, to explore, and to learn.

To Munish, it doesn’t matter who you are speaking with. What matters is that you understand the individual’s situation and help as best as you can. That’s what RealEstateInvestor.com is all about. Helping each other find success faster and easier.

We need to understand what their situation is and then help them as best we can. That’s our motto and is the kind of value our CEO’s have clearly demonstrated for this organization. – Munish Gaur

The Value of Learning From Other Cultures And Building Lifelong Experiences.

While Munish has a master’s degree in Human Resources, he credits his life experiences as further expanding his education.

Munish claims that having had the opportunity to interact with people from different backgrounds in the United States, United Kingdom, South Africa, and Australia, has also brought learning experiences. He credits a year long trip to England when he was 25 years old as being an eye-opener.

I thought I had doubled my 25 years of life experience with the kind of exposure I got (during that one year in the U.K.)… If you just observe, you see… how people live in a different country or even different city… It’s interesting how people think differently in different countries. – Munish Gaur shared excitedly and earnestly when talking about learning from different people and cultures. 

A Culture Of Fun and Family.

Two values we care about at RealEstateInvestor.com is having fun and prioritizing family and friends. We want this not only for our team members, but for our members too. That’s why we’re always looking for ways to streamline processes and take more of the little jobs off real estate entrepreneurs plates. That way they can do less work and spend more time enjoying life.

We asked Munish about his life in New Delhi and what he enjoyed doing for fun…

When not working, Munish and his wife enjoy traveling and trying new cuisines. So far, his favorite place is England. He found Edinburgh to be peaceful and green and he loved the culture and history he found there.

Munish and his wife celebrated a new year in a new country for the past several years until recently when his wife was expecting. Munish and his wife, Shimpy, welcomed a daughter earlier this year, a month sooner than originally expected.

A couple weeks after his daughter’s birth, the Covid-19 pandemic happened, and their city was put on lockdown. He feels grateful to have had his daughter a month early to where his family was able to see her before the lockdown began.

Everything happens for a reason. That’s the kind of faith I believe in. – Munish Gaur shares about the birth of his daughter during an unprecedented time for the entire world. 

Even after spending more than 100 days in his home with his wife and newborn baby girl, Munish says he feels loved and blessed. Everything worked out. They were fortunate to enjoy family time with their newborn who they named Aadriti, which means ray of light.

Everything has fallen in the right place at the right time. We were lucky to have her at the right time. – Munish Gaur shares again. 

Munish is a doting father and husband, and he’s looking forward to traveling again soon, and this time sharing those experiences with his daughter, as well.

What’s Munish’s Favorite Thing About Working At RealEstateInvestor.com? (Besides Working With His Wife!)

Without hesitation, Munish told us he loves the culture and the people at RealEstateInvestor.com who are now more like an extended family. With only 24 hours in a day and 8 of them asleep, on average, Munish indicated he spends more time with coworkers like most people in careers do.

(You) interact with them much more than you actually do with your family. They become your second family. – Munish Gaur shares.

One of Munish’s favorite experiences was when our founder Gary Boomershine and our CFO Wayne Jarrett visited the team in India and went on many adventures together. He’s looking forward to the next trip and is grateful to be part of a community that values all of their talented team members across the world.

Being part of a global community with RealEstateInvestor.com.

Munish said that nothing beats interacting with your team and sharing experiences to understand where they are coming from. While the lingo may change, you are not just sharing words, you are also sharing emotions.

Love the people you work with and it will be fun! – Munish Gaur

Munish… we couldn’t agree more! We’re grateful to have such an amazing team in India, and an awesome team member like Munish… And of course his wife Shimpy too! (Her story will be coming soon!) 

To say Gary Boomershine, founder of RealEstateInvestor.com, is passionate about real estate is an understatement. We were fortunate enough to talk with him today about his predictions for the future of the real estate market and the seven-year cycle.

Is now the time to buy?

It’s a question Gary has heard hundreds of times. Before responding with a simple yes or no, Gary noted fundamentals to consider when making a purchase decision. The old “keep it simple” adage is not new to real estate and is a concept Gary recommends when it comes to investing in real estate. 

It’s as simple as this: You want to buy low, sell high, and not lose your investor’s money. – Gary Boomershine shares.

When considering a real estate purchase from an investment or wholesale standpoint, Gary warns not to fall in love with the property. Instead, fall in love with the cash flow. 

He suggests keeping in mind the three buckets of cash: 

1. Cash Now 
2. Cash Flow
3. Cash Later 

The “Cash Now” Bucket

Many investors think there is only one bucket, Cash Now, which is the immediate or short-term return on your investment. 

Common examples of Cash Now deals include wholesaling and house flipping which is buying, fixing, and selling a home for a profit. “Cash Now” refers to the transactional profit that’s made during a quick turnaround investment deal.

Cash Now deals are great. They can be lucrative, but as a one-time transaction payout, this is really just a JOB investors do. There’s no long term revenue associated with this bucket. – Gary shares.

Cash Now deals are one of the most common strategies that real estate investors employ in today’s market. But Gary strongly recommends that real estate investors not focus on this cash bucket alone. Instead, they should ALWAYS be looking at the other cash buckets to diversify the revenue they bring in. 

 “A lot of real estate investors think there’s just one bucket, the Cash Now bucket. They’re always thinking, ‘How can I make a quick transaction and a quick buck?’ That mindset drastically limits the deals they could be getting if they simply kept their eyes open to all three buckets of cash.” 

The “Cash Flow” Bucket

Cash Flow applies to rentals and the income the investor will receive on a regular basis. But Cash Flow can also be private lending which is an area he recommends when growing your business in this kind of market.

The “Cash Later” Bucket

Cash Later is the appreciation and tax advantages investors get on the property, not to mention the renter paying down the mortgage. 

Of course, everyone must live somewhere. If you are looking to purchase a home you will live in, or one you will rent out, which Gary refers to as a “buy and hold” investment, he recommends that you always look for a quality property. Not just any property that comes along in the right price range.

He also recommends that Investors plan to upgrade their “buy and hold” portfolio as well. This adds value to their investment long term. 

Investors should also be prepared to keep “cash later” investment deals for some time, if they wish to get a return. Gary explains why:

“Real estate is a finance and leverage game and it’s a long term play. It’s easy to be shortsighted just thinking about making a quick buck today, sacrificing the real advantages of real estate for long term wealth and its tax benefits.”

Overdue For A Downward Turn…

Gary suggests the market is due—actually, well overdue—for a downward turn. In fact, he predicted this long before COVID-19 came around… He’s been talking about this on nearly every podcast and interview he’s been on for the past two years! 

Historically, we’ve seen similar patterns, or cycles, that impact our economy and the real estate market every seven years or so, bringing with it a euphoric stage where massive transfers of wealth occur. 

This includes the mortgage crisis in 2008 and the 9/11 attacks in 2001, which both had significant impacts on the stock market. In 1994, there was the bond market crisis, and in 1987, we had Black Monday. All of which occurred seven years apart and date back almost 100 years. 

With these past economic examples, Gary has been predicting what he calls a “Boogeyman Event” and the next downturn, for several years. This cycle is far different from the natural order of supply and demand. It’s preceded by what many people call the “euphoric stage,” which is the final stage of the real estate market before the downturn. 

Gary explains his prediction and the euphoric stage well in his quote below.

It’s happened every seven years… Each downturn seems to have similar beginning catalytic events and similar end cycles. This creates what many people call the ‘euphoric stage.’ The euphoric stage is actually the final stage of the real estate market before the downturn occurs. It’s when everyone starts talking about real estate— The barber, the hairdresser… You can’t lose. It’s when the late night tv guys selling: “How To Get Rich In Real Estate,” start popping up everywhere. During this stage it’s a sellers market with over bidding on houses going on everywhere, which is when people start talking about real estate left and right. And it’s during the actual downturn or shortly after that massive transformations of wealth occur. This has happened consistently in an uncanny rhythm. So I had no doubt that we were overdue for what I call a “Boogeyman Event,” to start the cycle all over again. I’ve been telling real estate investors to be preparing for something like this for a while now. 2020 might have been a few years late, but here we are. – Gary Boomershine, RealEstateInvestor.com

The Boogeyman Is Here… So, What Should Real Estate Investors Expect?

At an almost twelve-year high, real estate investors should be prepared for a change, according to Gary who believes the next 6-9 months will be fairly the same as today. But investors should expect a drop in the next 24 months, with hefty decreases in some areas of the country of 20%. Here’s what he shared:

“We’re still seeing money out there… However, I foresee a drop in real estate in the next 24 months. Some markets, what I call the “linear markets,” will probably see more of a 5-8% drop similar to 2008. These are usually rural or middle parts of the country like Alabama, Oklahoma, Ohio, etc. Other areas might get hit much harder. Hot areas like Las Vegas, Phoenix, Hawaii, etc. might end up seeing drops upwards into the 25-30%+ range.” 

Today, we are seeing record high rates of unemployment. With people out of work, the inability for them to pay their mortgage will continue to rise as well. According to Gary, 25% of mortgage holders have less than one month’s savings. 

Inevitably, this will lead to a foreclosure boom. With more properties flooding the market and sellers desperate to unload properties they can’t afford, prices will drop. Investors with cash or creative buying power will be able to get great deals, while also helping sellers avoid financial disasters such as foreclosures. 

Mortgage holders aren’t the only group affected. Investors will also feel the impact according to Gary, who tells us that 53% of people living in rental properties have less than $500 in their savings account.

Landlords will need to sell because people won’t pay their rent. – Gary shares.

When renters cannot pay their rent, landlords suffer unless they have reserves to fall back on, and many do not… This leads to the snowball effect that we’ve seen repeat in the same cycle over the past 100 years. 

History is a great predictor of the future.  –Gary answers when asked how he came about his predictions earlier than most.

Many landlords bought late when real estate was peaking. In recent years, 50% of the single-family properties purchased were done by investors using them for rental purposes, not to live in themselves. 

These landlords who once weren’t interested in selling their properties are now having a change of heart, according to Gary, who noted their willingness to sell at a lower price than they would have entertained in the past. 

“There are burnt out landlords who were not interested in selling before. Now they are… Investors are going back to their old leads who said no to selling earlier and are finding sellers interested again. All the more reason why follow-up is gold during times like this.” 

This will present opportunities in the market, as Gary predicts these drops will be followed by massive appreciation. History agrees with him…

The biggest transformation of wealth will happen during these downturns. It happened every time before, and it will no doubt happen again. – Gary shares.

Gary suggests holding onto the properties you have now, citing incredible gains are coming. He gave an example of a property in the San Francisco Bay area that is worth $3 million today. In ten years, he predicts, it will be worth $10 million. A deal that’s definitely not too shabby! 

How is Gary so confident about this?

It’s simple economics… Hyper-inflation. With the amount of money that has been added to the economy recently, massive inflation is inevitable. And with that comes higher prices for everything from basic essentials like milk and cheese, to hard assets like real estate. 

In a hyper-inflation scenario, people will want to have hard assets. The middle class will disappear. Those who own real estate will be part of the wealthy. It has happened in other countries, and Gary expects it to happen here adding:

“Real estate is a long term game.”

What Should Real Estate Investors Be Doing Today?

Gary, who said they are already seeing a shift to buying remotely and creatively, compared today’s market to a tsunami. 

“People shouldn’t get caught watching the water recede rapidly at the shoreline thinking ‘Wow, look at the fish left on the beach!’ Instead, they need to get moving fast.” 

Instead, he recommends that investors stay one step ahead, thinking ahead and asking themselves, “Where do I want to be right now? On the shore or on higher ground?”

When it comes to what real estate investors need to be doing right now, Gary’s answer is in his “Three P’s.” 

Gary Boomershine’s 3 P’s: 

1. Protect what you have. 
2. Pivot to take advantage of the new market.
3. Profit. 

He expands on this a little further:

“Whatever you do, don’t sit idle. Take advantage of the situation and prepare for the future. Now is not a time to be sitting on the sidelines… Right now is a good time to step in and figure out what you’re doing and where you’re going.”

Right now real estate investors are doubling up on their marketing and going back to their old leads. This is the perfect time to learn how to buy and sell property remotely. 

This Virtual Wholesaling concept has seen an increase in recent months as investors began working from home. The market expands greatly when you work virtually. Investors like Gary can live in San Francisco and purchase properties in Dallas or Atlanta.

Gary also mentions that he’s seeing a massive shift to buying creatively. And by creatively, he means people are turning to private lending. Owners are willing to help finance some or all of the property because they want the income stream. 

“Buying creatively is going to keep growing in popularity since there’s a lot of opportunity there right now. Especially as owners look for additional revenue opportunities, and as they become increasingly concerned about the amount of taxes they will have to pay, capital gains, and so on. Some people are even worried about their money being safe in banks long term, making creative financing more appealing.” 

Real Estate, Monopoly, And An Uncertain Future…

While Gary considers himself a conservative investor, he cautions buyers not to wait too long before jumping back into the market. But, no one knows what the future holds. There could be a second wave, or even a third, fourth, or fifth wave, which is why he recommends having a safety net. Here’s what he shares…

“If you’re planning to buy today, ask yourself, can you afford it? If the answer is yes, can you still afford it if your job changes? For investors looking to purchase a rental unit, ask yourself if you can afford the property if your vacancy rate soars to 60%. If you can break even at that rate, buy the property. Be wise, use your best judgement, and think ahead.” 

Gary also referred to an old salesmen quote that says: 

“Good salespeople know what to go after. Great salespeople know what to walk away from.”

If you want to play the real estate game, then remember that it’s just like playing Monopoly. You can have all the real estate, but if you can’t pay the mortgage, you’ll have to turn your cards over, leverage them, and sell them for pennies on the dollar. Nobody wants to have to do that. – Gary Boomershine, RealEstateInvestor.com

At the end of the day, the future is no doubt uncertain. But one thing is for sure… 

There are incredible opportunities available in this market and more to come. And thanks to Gary sharing his wisdom with us, we know what to look out for, how to be prepared, and how to make the most of it. 

This is an absolutely fantastic time to be in real estate investing. For real estate investors who are already in the game, right now is all about making the right moves that will help you survive and thrive in this new market. – Gary Boomershine 

Ready To Learn More? 

If you’re interested in learning more about how you can survive and thrive as a real estate investor in a Post-Coronavirus world, we recommend that you check out this other article that dives deeper into this topic here:

https://realestateinvestor.com/articles/should-you-invest-in-real-estate-post-coronavirus/

Willie joined our RealEstateInvestor.com team 8 years ago, where he’s been an essential part of helping to build our highly effective coaching program that’s focused on helping real estate entrepreneurs build a high-growth, profitable, and successful real-estate business.

Our REInvent Coaching Program has helped numerous real estate investors accelerate business growth, fast track financial results, and build passive income.

An inside look at what a coaching program can help you achieve.

Whether you’re trying to build a successful real estate business from scratch, or you’re trying to scale your business to where you can achieve a high 6-figure or 7-figure income, a coach can help you get there. And that’s exactly what Willie Hooks and the rest of our REInvent Coaches help our members do.

A coach can help you clarify what your vision is, clarify what you need to do to get to that business level, help you understand what your current capabilities are, and which approach you need to take to achieve real success.

Our REInvent Coaching Program can help you:

1. Build a seven-figure real estate business
2. Generate massive profits
3. Cultivate a high growth environment
4. Become the CEO of a business that can run without you working in it
5. Make fast progress toward living these five important freedoms:

• Freedom of time
• Freedom of money
• Freedom of relationships
• Freedom of purpose
• And freedom of lifestyle

Q&A: Getting to know Master Coach Willie Hooks

During our interview with Willie we asked him several quick “get to know you” questions. Here are a few of our favorite responses we received.

Q: What’s your favorite thing about working with our RealEstateInvestor.com coaching clients? 

A: I’m passionate about helping my clients grow, develop, transform, achieve, and succeed in business and in life. In fact, the legacy that I leave lives with all the people I have helped to grow, develop, transform, achieve, and succeed. Those are great key words to be remembered by.

Q: When you were a kid, what did you want to be when you grew up?

A:As a kid I wanted to be a professional athlete or a highly decorated soldier. Which is probably one of the reasons why I joined the military at the age of 17— to serve my country and to fulfill that childhood dream. After serving for three years in the military, I decided to get out and pursue a career in computer technology, where I earned a degree in that field and later earned an MBA from the University of Pittsburgh.

Q: When you’re not working, what do you love to do?

A:I’m an avid reader, a movie enthusiast, and I love playing basketball… Even if I’m not as good as I used to be at it. As the old saying goes, “The older I get, the better I was.” 

Q: How do you start your day in the morning? 

A: When my alarm goes off in the morning I wake up, get up, and start my morning routine. The mornings are a great time to imprint new success behavioral patterns within the neural pathways of our brain.

Part of my morning routine, the thing that you might find funny or quirky, is that I do a short five minute primal scream exercise to release any negative tension within my body and to clear the cobwebs out of my brain that may have accumulated throughout the night.

Primal screaming, is just yelling out loud at the top of your voice the first thing that comes to mind, and at the same time visualizing negative tension, stress, and anxiety being released from your body and flowing out into the universe where the healing light can cleanse it.

Q: What’s one of the common misconceptions about coaching? 

A: A lot of people say that the coach holds you accountable. I’d rather say that a coach helps you build an accountability system, because the coach is partnering with you. It’s not a parent child relationship, it’s a support buddy system.

A coach will help you build an accountability system and a motivational system that you can utilize to hold yourself accountable in order to achieve the results you’ve dreamed of achieving.

Q: What makes our coaching program unique and different from other coaching programs?

A: Willie took the time to share his answer to this question in this short video clip below.

With only $500 in his pocket, Joe admits things were tough when he returned to New Hampshire. At first, Joe lived in his truck. He took a job as a machinist and scrimped and saved until he had enough money to purchase a tow-behind RV. But through all those years, the potential for success stuck with him as he remembered what his father told him about why he should invest in multi-family real estate.

Something my father told me about investing in multi-family properties popped into my head while I was working that job and living in a not-so-comfortable RV… He shared that if I used my money to purchase a property, I could live there for free and save for more investment properties. Building off that. – Joe shared.

Having successfully purchased and sold a property when he was a few years younger, Joe figured there was no reason why he couldn’t do that again. So he parked his RV in a campground near his job, where he lived for over a year until he saved enough money to purchase a small multi-family property. From There, The Entrepreneurial Spirit Was Strong In Joe…  Unlike what Joe did in his early twenties with his first property, this time he fixed up his investment property, refinanced it, and bought another. Following a popular methodology that many successful real estate investors utilize to grow their portfolios. After purchasing four or five buildings, including some retail business spaces, Joe had a decent portfolio and was enjoying owning and running multiple businesses and living the busy entrepreneur lifestyle. Joe spent the next seven years juggling real estate investing, working full time running a machine shop, as well as teaching at and owning a yoga studio. Having his toes dipped in multiple diverse businesses was something that Joe took pride in, even enjoyed as a hard working business owner. The Pursuit Of Freedom In Business However, like the DIY trap that many business owners find themselves in, it wasn’t sustainable long term for Joe. Especially since his 80-hour work weeks didn’t provide him with the freedom he would need to live the lifestyle he desired. It came time for a change when Joe met his current wife and fell in love. With her encouragement, he left his multiple careers behind and went into real estate full time five years ago.

Either I’m going for this real estate thing full time or I’m just going to give up on the dream. So I left my career as a machinist, made the jump, closed my studio, left my job as a yoga instructor, and sold some of my buildings. I had about $30k to start my business. I didn’t have a 401k, or people backing me, but I started young in this business. Then I recreated myself with $500 while living in an RV! So, I figured it was worth going all in now or never. It was— make it in real estate or go back to a machinist job… – Joe shares about his thought process when making the bold move to pursue his dream of building a full time real estate investment business.

“That was five years ago… And the past five years have been a journey in and of itself in real estate land.” Joe says about the ride and the boldness of taking massive action to pursue his dreams of living his best life. A life where he could spend time with his wife, find financial freedom, and not work 80 hours a week. Joe’s massive action and tenacity to go “all in” paid off! Today, Joe Theriault has a thriving real estate business, a team of 8 associates, and they’ve been closing 1 – 2 deals a week. With a two-year goal to acquire 100 units, Joe focuses on wholesale, brokerage, and flipping homes. How Has RealEstateInvestor.com Helped Joe’s Business?  Joe shared with us about his first introduction to RealEstateInvestor.com’s REIgnyte Platform of Products, and how impressed he was with our Grow CRM and the technology our co-founder had unveiled at a conference he attended. Of course, as life would have it, Joe had recently invested in another real estate CRM platform shortly before the event. He shares about the odd timing of it all:

I was already a customer of another software company and had (not only) just bought their software but also invested in this (software) company (too). It was a big deal to switch at the time. – He shares.

At the time, the system he had invested in prior was not performing to meet his needs the way he felt like our Grow CRM could. Being a real estate entrepreneur who understands the value of his time and how our automation could save him even more of it, Joe found The REIgnyte Platform (formerly called InvestorPO) to be a better fit for his business. While it wasn’t an easy call to make a switch to another CRM again, Joe is happy he did, remaining a customer to this day. “The system works and functions the way it’s supposed to. It follows up. There’s flexibility to customize. We’re able to generate offers in there pretty fast. It works on the front end pretty good.” Joe shares what he likes about our REIgyte Platform and why he feels it’s a great fit for other real estate entrepreneurs. It’s probably no surprise that we agree with our amazing member Joe Theriault! Namaste Joe. Making Business Easier For Real Estate Entrepreneurs We loved hearing Joe’s story, which he mentioned is simply a single piece of the pie when it comes to his full journey in building his successful real estate business. Something he said he could spend all day talking about. We have no doubt that this amazing entrepreneur has plenty of tales to tell after having started in multi-family so young, leaving the industry, and reclaiming his piece of the real estate empire with only $500 to his name. Joe is a definite example of persistence, taking action, and being bold in going after his dreams. If you’ve been wanting to find a way to make building your business easier so you can reclaim more of your time and close more deals with less effort, RealEstateInvestor.com has the perfect solution for you. With a fully integrated platform and services that grow with you as your business grows, we’re committed to showing you what entrepreneur life should be like. We invite you to visit our website and find out for yourself today. By using REIgnyte, your business becomes easier and deals close quicker. Solid Advice From Joe… When asked what advice Joe Theriault had for real estate investors in today’s market. He stressed how important it is to pause and review your business needs often, and to build a strong foundation for your business. Even if that means starting all over.

What I’m learning now, I wish I had learned early on. I’m using this time to rip the wheels off the bus. Get the people in the right seats that need to be there. Hire the absolute best people we can, get the right systems and processes in place, and let’s go for it. We brought on some really, really good talent that will change this business.

Joe says he’s used the time at home during the COVID-19 pandemic to pause and review his business and to really get after implementing the EOS Traction Entrepreneurial Operating Methodology for his business. EOS Traction is a world-recognized business model that many successful large businesses utilize, including ourselves here at RealEstateInvestor.com. We even have a dedicated EOS Traction Coach on our team who works closely with our leadership team. All with a goal to build the best business we can for real estate entrepreneurs across the nation.

We’ve been talking about it from the early days of COVID-19…

It was the driving catalyst for our building Real Estate Investor Beacon, a 100% Free Facebook Community for real estate entrepreneurs looking for guidance through this time.

It’s why we started hosting our free monthly in-depth coaching events, as well as our free weekly strategy sessions where the REI Beacon community can ask all of their questions in a live open format.

And it’s why we’re committed to being beacons of light in our industry and our communities. With a common goal of spreading a message of hope and positivity, redirecting our focus towards what is ahead of us…

Opportunity.

Why is NOW the time to invest in real estate?

We’ve discussed strategic business moves you can make while at home, how to find motivated sellers, as well as why this is the time to invest in vacation rental properties, short sales, and probate real estate.

In this article, we’ll discuss four reasons you should consider investing in real estate right away.

#1 – Record Low-Interest Rates

Even before the coronavirus outbreak, the US was experiencing low-interest rates, but since the pandemic, rates have dropped to record levels—the lowest recording since Freddie Mac began tracking this data almost fifty years ago!

Because of this, now’s the time to refinance or consider investing in a new property.

By taking advantage of refinancing at a lower rate, you’ll not only save in interest paid long-term, but you can improve your cash flow too. Which will free up some funds to invest in real estate.

Have you ever thought about house flipping?

Not only can you get better rates on your home purchase, your house will also be more affordable to buyers when you sell. There will no doubt be new home buyers on the market looking to take advantage of these historically low rates. Meaning there will be a nice win-win for both of you.

 #2- A Surge in Treasury Bonds

If you haven’t been following the stock market, you may not know that there’s been an increase in treasury bonds. It’s a domino effect, really…

When safety investments increase, like the surge in treasury bond purchases, investors look for other safe investment options such as real estate.

Why is this a positive for real estate investors?

It opens up the door to more wholesale deals.

Now is a good time to work wholesale deals since investors are looking for properties to buy.

Wholesale investment deals can significantly help real estate investors grow and scale their business. In fact, we have a case study on one of our Managed Service Members who grew their business from 2 flips a month to 23 deals in just 7 months after our sales team helped them boost their wholesale deal flow.

It means a boost in private money funding.

But that’s not all. Equity investors are looking for other options for investing their money. Have you considered funding your next real estate investment with private money? It may be a better deal for you than a hard money loan.

We’ve got a podcast with one of our founders, Gary Boomershine, and an expert in private money— Jay Conner, that you can listen to about this subject here.

#3 Building Material Shortages

Because of Covid-19, many industries have seen disruptions in their supply chain, especially if their goods or materials come from China. For the home construction industry, imported building materials can take much longer to get today compared to pre-coronavirus days. This has an impact on their building schedule, lengthening the construction process, and reducing the amount of brand new properties available.

This works in favor of real estate investors who flip houses.

With less inventory of new properties on the market, investors that flip can experience more buyer’s demand in renovated homes. In addition, when there are more buyers than sellers, the opportunity for multiple offers can exist, making it an even better market for investors who are into flipping houses.

And it helps long-term rental investors see fewer vacancies.

Besides that, lower inventory means long-term rental investors will see fewer vacancies in their properties. People need a place to live and if there aren’t many choices, those that are available will fill much faster than when options are plentiful.

How to get the most out of a low inventory housing market?

Before you invest in rental homes, it’s important for you to understand what the standard rental rates are for renters in your area. High priced properties are not in short supply. To the contrary, there’s an abundance of those properties for sale and rent in almost any market.

To take advantage of low inventory in your market, you must concentrate on affordable options you can either flip or rent. No matter what type of market you’re planning to invest in, it always pays to do your homework first.

#4 Vacationing Has Stalled…

It’s not a secret… People are nervous about taking vacations over the summer break. From Covid-19 restrictions, worry about international traveling, and even some states going as far as releasing tourism campaigns encouraging out of state residents not to travel to their more remote resort towns until later, traveling is a bit of an iffy subject these days.

Cancellations and empty rentals have already impacted existing property owners, and likely will continue to be an issue. Even if things clear up soon, it’s unlikely that tourism will bounce back to where it was pre-corona days… At least for a few years, that is.

This can leave investors feeling panicky if they don’t have sufficient reserves to weather this type of storm. Or if they work on tight margins and require maximum occupancy to survive.

Vacation rental owners might need to sell fast at bargain prices.

Desperate investors could opt to sell fast. And a fast sale could mean a bargain price for you. We have an article that discusses this more in-depth that you can read here.

If you’re looking to invest in vacation real estate for the future when things hopefully bounce back, now may be the time to pick up a property for a great deal. After all, we know the sun will shine again tomorrow and vacationers will eventually return to traveling.

A post-coronavirus world will be different, but opportunity is often found amidst change.

In a post-coronavirus world, there could be plenty of opportunities for you to invest. When our news feeds return to normal, investment opportunities might not be quite as vast as what they are right now amidst uncertainty.