Epic Real Estate Investing - Real Estate Predictions Post-COVID-19 | 2020 through 2021 | 1071

Episode Date: July 7, 2020

In today’s episode, Matt shares a list of 10 factors that will impact the real estate the most in the post-COVID-19 period and the winning action plan to overcome it! Tune in and find out more! Learn more about your ad choices. Visit megaphone.fm/adchoices

I have seen the future. Well, almost. I do have a list of the 10 factors that will impact real estate the most post COVID-19. And I'll let you in on those. And then I'm going to give you a winning action plan. This is Terrio Media. Success in real estate has nothing to do with shiny objects. It has everything to do with mastering the basics.

The three pillars of real estate investing. attract convert exit Matt Terrio has been helping real estate investors do just that for more than a decade now if you want to make money in real estate keep listening if you want it faster visit r-ei-aise dot com here's Matt hi my name is Matt Terrio I am CEO of epic real estate where I show people how to invest in real estate with an emphasis on retiring early

There are a number of factors to consider, probably more than ever, when making real estate predictions. And these factors are all interrelated. The counselors of real estate, it's an international organization of high-profile property professionals, which include principles of prominent real estate, financial, legal, and business advisory firms. They recently compiled a list of such factors that are most likely to affect the direction of the real estate market.

And really, to no surprise, COVID-19, the global pandemic, holds the top spot on the list of these factors that control the future of real estate two factors specific to COVID-19 have huge potential to drive the market one factor increases the demand for real estate while the other somewhat reduces it if the virtual office and a preference for in-home entertainment if those things stick the demand for commercial space could be significantly reduced while demand for larger homes may increase yet still likely resulting in a net reduction in demand.

On the other hand, if social distancing practices persist to a point where human density is reduced in places that were once previously normal, such as in planes or airports or restaurants, theaters, retail stores, offices, government buildings, banks, stuff like that, then a demand for larger commercial spaces could follow. And demand right now will be defined mostly by the extent to which this crisis leads us to adopt new habits and abandon all. old ones, of which it could take years to clearly see COVID's impact. The second largest factor facing real estate's future revolves around economic renewal, you know, with significant segments

of the economy like retail, air travel, construction, leisure and hospitality so badly affected. The rebound here is expected to be a slow one into 2022, but by no means is it guaranteed to be slow. Ironically, the health care industry, especially workers in lower income positions, is facing an intense financial squeeze in the wake of COVID. The impact of shelter-in-place orders on state and local tax revenues could reduce non-federal government employment levels, very similar to those experienced amid the global financial crisis of 2007. Next on the list is capital market risk, followed closely by public and private debt. Volatility has spiked since the middle of March, which makes it more difficult to price debt, which is essentially what drives the entire economy.

The percentage of rent being paid in each sector is an important metric as well, as is late debt payments. Federal intervention via stimulus helped keep the markets running, but didn't necessarily do anything to mitigate their long-term concern about defaults and losses. While pricing stability and liquidity appear to have somewhat returned, late payments and loan defaults have seen a significant increase. Affordable housing is next on the list, of which has been an ongoing challenge before we even heard of COVID. with very little debate for its need, but much debate on how to make it happen. And until a solution for affordable housing comes about, rents will rise and continue to rise,

along with the prices of multifamily investment properties. Number six on the top 10 list is the flow of people, meaning the flow between and within countries has always been a critical driver of real estate. COVID has created unprecedented challenges to mobility. Immigration has ground to a halt due to both policy and the coronavirus pandemic. This will negatively impact demand for residential, hospitality, and retail real estate,

particularly in communities that have historically relied on such demand. On a more domestic level, independent polls have showed significant portions of urbanites are considering fleeing the city as concerns about the virus, economic effects of the pandemic, and personal safety take hold. And rounding out this list are technology and workflow, infrastructure, and environmental, social, and governance factors. With all that said, the short, and midterm ramifications remain to be seen as so much is dependent on human behavior. While demographic and economic trends have been fairly reliable predictors of behavior in the past, this unprecedented event that is COVID-19 is quite the wildcard,

interjecting a significant amount of uncertainty. What is certain, however, is that people need real estate. They need shelter. They need a place to lay their head at night. They need a place to work. They need a place to recreate. They need a place to protect them from the element. and that need isn't going away. And with each generation, slightly bigger than the previous, the demand for real estate will continue to grow. If you're a speculative investor in nature, meaning you fix and flip and play the retail market,

or you are anticipating appreciation for your investments, proceed with caution. If you like a sure thing, buy and hold and make sure it cash flows while you do. It's not an exciting plan, I know, but it's a good one that will withstand most of whatever this list of factors may throw it us. Expecting more, waiting for the aha moment. Well, here it is. Beware the investment activity

that produces applause. The great moves are usually greeted by yawns. Said Warren Buffett. See you next. Yeah, yeah, we got the cash flow. Huh. Yeah, yeah, we got the cash flow. Yeah, yeah, we got the cash flow. You didn't know, home, boy, we got the cash flow. Podcast is a part of the C-suite Radio Network. For more top business podcasts, visit c-sweetradio.com.