Investing in American Real Estate – During Coronavirus

First and foremost, we hope that everyone is safe during these challenging times. Coronavirus is the great equalizer and has threatened our lives equally throughout the world.

While we are certainly unhappy about the global pandemic that has arisen, there will be many opportunistic Real Estate investment opportunities that develop throughout the United States. Every down-cycle creates avenues for investment that will rise in value once the market recovers. Millionaires are born during bad economic downturns. Real estate investing is no different.

Within the next few months there wil be many chances to purchase quality real estate in the United States at discount prices. It is currently too soon to pull the trigger as landlords and tenants are still in flux figuring out the market. Evictions are on hold and rent payments have stalled in certain scenarios.

However, it is clear that the world will change moving forward. The American and global economies were built on high occupancy for both, commercial and hospitality enterprises. A future deviling of 20-30% for the average business will severely impact break-even, rent payments, payroll and  entire business models. This in-turn will cause Companies shut-down permanently. It is only a matter of time before this cycle begins. For the savvy investor and those holding cash, it will be a great time to build wealth. Here are a list of recommendations for purchase:

 

1) Condo Apartments

We are seeing a 20% decrease in Condo values throughout Manhattan and other major Cities. The Real Estate market was already in decline. This pandemic only strengthens the opportunity to purchase a significantly discounted prices. Of course, the range of negotiation depends on the location, condition of the Apartment and building. For those that are feeling bullish, we recommend purchasing bulk condo units from new developers at discount prices

 

2) Multi-Family Buildings

Purchasing a multi-unit building allows for economies of scale. Maximizing the efficiency of maintenance and other expenses is ideal through the acquisition of a multi-family Apartment building. The price-points of these buildings has also declined during these turbulent times. While the jury is still out on the market floor, there will be opportunities to purchase these types of properties at negotiable prices moving forward

 

3) Commercial Strip Centers

This avenue of investment is all about risk and reward. Commercial real estate tends to have higher returns, but is often associated with a riskier investment. At present time, there will be a lot of commercial properties that suffer due to the decline in businesses. If an investor is able to weather the storm in the near future, there will be a major opportunity for appreciation down the road. There is also the possibility of repurposing some of the commercial asset into medical, industrial or other popular usage. This is a gamble, but if executed correctly can reap strong rewards.

 

 

Of course, fortune will always favor the bold, but it’s important to find an asset that offers a combination of risk and stability.

With years of experience representing buyers all throughout the world, there are certainly great opportunities to make money during these challenging times.

 

Contact Us

Please contact garayrealestate@gmail.com for investment opportunities and real estate related questions. We are always at your convenience and look forward to assisting you.

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