There’s no doubt that coronavirus has changed the world, multifamily, and the economy because of the obvious fact that there are millions of people who are out of work due to shelter at home orders nationwide.
With most cities requiring non-essential businesses to remain closed, this has also affected the multifamily real estate market because of the obvious reason that investors like you and I cannot be out there as before buying and selling multi-family properties.
The big question that you should have right now is what should you be doing to prepare yourself as an investor once coronavirus is under control and we are allowed to resume business as normal?
In this article, I’ll answer the question of what investors should be doing to prepare for going back to business as normal in a “post-pandemic” world.
Step #1 – Start Contacting Your Multifamily Old Leads
The first thing that multifamily investors should be doing right now is following up with their old leads.
This is important because you never know how coronavirus has changed the economic situation of another owner and they now may be interested in selling their multifamily property compared to 120 days ago when they were not interested in selling.
Another important reason why you should start contacting your old leads right now is because of the simple fact that most people, including the owners that you may have been trying to reach for months, have been at home for the last 60 days and they should be easier to reach now compared to other times in the past.
When you start contacting the owners on your lists, make sure that you take the time to be compassionate and listen to what’s going on with their lives because taking the time to build a relationship with your leads will be more effective than just trying to sell them within the first 5 minutes of your conversation with them.
Step #2 – Create A New Buyers List
Besides reaching out and making contact with your old leads, you should also be focusing on creating a new buyers list. This can be done by advertising on Google or Facebook and funneling those leads into an opt-in form on your website.
Yes, online advertising is a great way to build a buyer’s last but, what if you don’t want to advertise? How do you build a list then? The good thing is that there are a wide variety of other resources that you can tap into online to build your list of owners. Some of those resources include Bigger Pockets, Facebook groups, and real estate groups where other multifamily investors gather online to network with each other.
Step #3 – Connect With More Real Estate Agents
With over two million active real estate agents in the United States, the reality is that it doesn’t matter how big your list of real estate agents make currently, there’s always going to be more agents out there that you can add to your list.
Building a list of real estate agents is an important tactic to follow as a multi-family real estate investor because one or more realtors out there may be aware of off-market deals, or properties that are just about to come to Market.
You can give yourself the advantage as an investor by staying in contact with Realtors so that they will alert you first about their off-market deals and or properties that are just about to come to market before they list them on the MLS.
#4 – Get Yourself Ready Financially To Buy Your Next Property
Another important thing that you should be doing right now as a multifamily real estate investor is positioning yourself so that you can easily be ready to take advantage of an opportunity, when it comes up, to purchase a new multi-family property.
Positioning yourself financially during these turbulent economic times means that you have good credit and or access to financing or capital that you can use to purchase one or more multifamily properties at a great price.
Besides positioning yourself well financially to capitalize on great prices during the post coronavirus pandemic, you should also have specific goals, objectives and create an actual strategy that you can use to accomplish them.
If you currently belong to real estate investing groups online or other communities like Bigger Pockets, now would also be a good time to connect with other investors to find out what their plans are to capitalize on buying opportunities in the post coronavirus pandemic real estate market.
#5 – Re-Evaluate Your Business
Last of all, the most important, when the most important things that you should take the time to reevaluate your business to find out what’s working and not working.
Specifically, this means that you should take a hard look at your multifamily real estate business and consider everything that you should eliminate and what you could be doing more efficiently.
For some investors, this could mean hiring a property management company to manage their portfolio of multifamily properties, while for other investors this could mean hiring more staff to help them in their office.
Over the last 100 years, the world has seen a wide variety of crisis events like the 1929 and 1987 stock market crashes, or the Great Recession in 2008.
As an investor, the most important thing that you can do is learn from past events so that you can prepare yourself financially to take advantage of great prices in the multifamily real estate market following crisis periods like Coronavirus.