I get asked all the time where real estate is going and what opportunities might be coming up for investment or as a tenant. As a broker we are always looking for the next great opportunity to share with you our customers or to be the first in a specific product to bring to the masses. 2020 has brought us many changes and what seems like depressing news on a daily basis but I see a chance to make a great decision in Real Estate and below are my 3 suggestions to starting paying attention to.
Expansion – Yes I think you should lease or buy more space. Lets say you own a restaurant or business that traditionally packs people into a space to increase sales or productivity. As we open back up or go back to work the trends are making us want to be more spread out but still together. Restaurants are operating at less density and open workstations are all but gone now so why not accommodate and take advantage of a slow rental market? If I am an office user my neighbors or the floor below me is emptying out leaving my landlord the need to sign more leases and find more tenants. This is a great time to negotiate some very good terms to make your space larger for the same or less number of visitors or employees. Look at your numbers and figure out how much space you need to do the same volume as before in a larger space. If its adding 30% to your lease this is the best time to approach your landlord and extend your lease at a potential discounted rate. Give them some confidence in your deal and sign a nice long lease while giving yourself the comfort of having a place to do business for the long run. This is the time to act.
Rent an Apartment – Lets say you own a house that you have kept in good shape and in a good part of town, making it very marketable to a potential buyer. This is the time to take advantage of an odd low inventory market by selling and cashing out. This is different then refinancing or taking on a home equity line as it is just a straight sale moving your equity from the real estate to your bank account. I would seriously take a look at what kind of equity you have in a house and if you have the ability to sell and move without completely upsetting your household I would suggest you sell that house. Its hard to make $30,000, $50,000 or more in one deal so selling a house that you really don’t own anyways for a big profit is smart and strategic. I would then go rent an apartment and wait for the next opportunity to pounce. This is the time to make a really smart decision and enjoy a windfall that can be used to buy the next great investment.
Flip a House – It hurt just to say it as I am not a big fan of house flipping as a way to make a living but in a time when it seems anyone will buy anything you might as well take advantage of it. Buying an outdated ranch in Hamilton County and making it awesome can be a quick money maker or taking an industrial building from old and ratty to clean and functional has its rewards. But you must do it wisely and consider what a real ROI is for the project. Many times you hear people talk about flipping a house and making $20,000 and while that can be a lot of money it really isn’t worth all the risk in the end and is frankly a break even at best. If you decide to take on the project start by understanding what the top of market is for like properties in the area and then what values work for you. Do you have a $100,000 downpayment or $1,000,000 in the bank? They do different things and before you jump in you need to understand what both can accomplish in the end. Using the most cash isn’t always the best play and borrowing too much can hurt you for a very long time so be sure to be diligent in your project but for sure look at how you can do a quick deal and make a quick buck in a fast paced time.
Hopefully in times like these people are always looking for great opportunities in their Real Estate market as well as looking years down the road at something worth waiting for. Take your time and be ready to act as planning will always be the key. I always advise people to work backwards from every deal and be truthful with their numbers so there are no surprises as you work really hard to chase new and exciting opportunities. Good Luck