I know when you read this headline it sounds like we are all facing doom. I am a glass half full kind of guy and I have a strong belief that you can think your way out of any crisis.
What if we could turn this chaos into an advantage?
On one hand, we are running a series of webinars to teach you all how to be buyers when everyone else is selling. We even had one set up for tomorrow.
On the other hand, we have the skill set to turn non paying rentals into profit centers. What if you have a rental that is leaking money? Basically it costs more than you take in every month.
What would stop you from selling this same property above full market value over a 30 year term with an above market interest rate. NOTHING IS STOPPING YOU from doing that. Better yet, there will be a herd of buyers who want that deal, because they cant qualify for a traditional mortgage. Better yet, what if you could set that deal up, then sell the mortgage to get all of your money up front! We actually talked about how to do that during the note seminar. I just sent out the recording yesterday. Just because everyone else is losing money doesn’t mean that we need to do it !!!! Welcome to REIA !!!!
There has never been a better time to be in real estate
Only about half of Americans are confident they can pay full rent in May: Survey
As job losses and unemployment continue to increase as a result of the coronavirus pandemic, more than half of Americans who rent their residence say they lack confidence they will be able to pay May rent in full.
That’s according to a new survey that finds 12% of renters do not expect to pay rent at all during May; 15% expect to pay partial rent in May. Another 21% said they don’t know yet.
The percentage saying they are confident they will have the funds for full rent (52%) was lower than the 69% who said they could pay April’s rent.
Income losses related to Covid-19 have hit 63% of renters across the nation, with 48% describing the losses as “devastating.”
Four in 10 renters said they plan to move in the next six months, according to the survey, which was conducted April 10–16 among 20,000 Americans by Apartments.com and Grace Hill, a property management technology and education provider.
The survey’s authors said at least part of the response may be attributable to federal stimulus checks reaching fewer than half of Americans by mid-April. Among those who were unsure whether they would be able to pay, 75% said they plan to use the stimulus to pay rent. Among all respondents, 60% planned to use the stimulus to pay rent. The study’s authors also stated that anxiety over a potential job loss may have contributed to uncertainty about making rent.
Over 26 million have filed for unemployment since states began shutting down, with many facing layoffs during the second half of March. As April 1 approached, campaigns calling to cancel rent and mortgage payments arose due to the uncertainty many have been experiencing. The online trend, “rent strike,” began along with hashtags #CancelRent, #KeepYourRent and #FoodNotRent.
Many Americans had some relief when the IRS deposited stimulus relief checks to those who were eligible the week of April 13. The CARES Act, a $2 trillion stimulus package passed by Congress, gave homeowners with federally backed loans two financial relief options, and for renters the act and many states and cities have banned evictions during the health pandemic.
“This is a very overwhelming time for renters, and I think they are worried about surviving and keeping a roof over their heads,” said Dru Armstrong, CEO of Grace Hill.
Kellogg Business School professor Adam Waytz, who is familiar with the survey, said one thing that stood out in the data was that the people hardest hit by the coronavirus crisis were the least familiar with the CARES Act. “A significant percentage of people who said they had experienced an income loss (compared to those who did not experience an income loss) reported no familiarity with the CARES Act. I would recommend that they educate themselves and work with property management companies to get to know more about relief programs,” he said.
Even though evictions have been banned, some renters are still worried about late fees.
Related video: Nearly 6% of home loans are in forbearance, says MBA survey
‘It is all about communication’
“Communication is the most important thing during this whole uncertain time. Renters need to make sure they are communicating with their property managers about their current situations,” Armstrong said. “And we are telling all of the companies we are working with to practice empathy.”
Armstrong said many apartment complexes are making the effort to be understanding with tenants.
“People are not navigating through a tough economic issue, but a serious health crisis as well. And it is important everyone remembers that,” she said.
“We’ve changed our wording and tone in our letters to renters, and we’ve also implemented payment plans for those who need a little extra time,” said Courtney Gordon, senior vice president at property manager Rise Residential. “Our property employees are calling renters to just check on them and make sure they are okay, because this is a stressful time.”
Renters are advised to give their landlords notice if they won’t be able to make rent or need to work out a payment plan.
Gordon said Rise Residential has worked out various payment plans with their renters.
“It is all about communication. As long as you explain to your property manager when you will be able to pay the full amount, they should understand,” Armstrong said. “One of the things we are seeing is property management companies trying to keep pace with all the changes and update their policies and train their teams on what those policies are,” Armstrong said. “What may have been true a month ago or even a week ago is probably not true anymore.”