Talking with Richard Scarbrough last month while recording Episode 19 of the Smarter Landlording Podcast brought out an interesting idea.
We have all heard about, if not actually felt, the increased amount of tightening going on against landlords these days as a result of the covid pandemic.
The courts are closed.
Eviction moratoriums go on and on.
There are calls for rent strikes and rent forgiveness.
New regulations and restrictions are passed almost every week.
It seems landlords just will not be able to win making real estate a terrible investment to get into right now.
Or is it?
And this is the point that Richard made. Perhaps all of these new regulations, moratoriums and tightening against landlords will create opportunities. Opportunities for those who have the knowledge and are persistent enough to push forward. Those willing to be in it for the long haul. Those who do not wait for things to get better or loosen.
Think about it. The increased stresses of being a landlord brought on by governments during this pandemic will cause some to say “To heck with it!” and get out of the market. Those folks will leave opportunities for those of us who stick with it. Those opportunities could be the properties that they decide to sell, or the reduced amount of competition for the properties already out there that they decide not to pursue.
Yes, there is a lot of doom and gloom out there regarding the pandemic, the economy, politics and where things are going in general. But to be successful one has to be optimistic even when it looks like everything may be coming down around you. You have to look for the opportunities and stick with it. All of the doom and gloom may in fact make real estate an even better investment.
Remember, as I say in my book, Advice From Experience To New Real Estate Investors:
Anytime is a great time to buy. Sure, there can be real estate bubbles and times you should not follow the crowd. Bubble or not, the trick is knowing what to buy and what not to buy no matter what the market conditions are.
Real estate is a great investment. It is solid and tangible. You can see it. You can go stand on it. Most of it is not going anywhere, nor is much more being made. Real estate, no matter where we are in the business cycle, is always wise to buy. But, you have to buy wisely.
And buying wisely is always the key. Don’t go along with the crowd and remember your cashflow fundamentals. There may have never been a time where real estate was a more wise but difficult investment to make.
Kevin Perk is the founder and publisher of Smarterlandlording.com. He is the author of Advice From Experience To New Real Estate Investors. Subscribe to Smarterlandlording here. Contact Kevin here.
