Wondering what impact the Coronavirus (COVID19) could have on your real estate note investing?
On Tuesday we held a live webinar to discuss the State of The Note Industry during these uncertain times. This originally aired to help our Note Investing Tools Members survive and thrive in the upcoming months. The response was fantastic and we wanted to share the replay here on our blog to help readers asking similar questions.
Rather than get bogged down with telling you how many people to hang out with or where to find toilet paper, we are going to help position our fellow note investors to profit during, and after, this event.
We are not talking profiting from it…we are talking about profiting in spite of it.
With every crisis, there is an opportunity.
What you do TODAY can have a MAJOR positive impact on your retirement and note portfolio – and we are going to walk you through all of it. Including what we personally are doing right now.
In this webinar, we answer your questions AND go through our plan to help each and every one of you in 4 important areas:
- The Note Investing World As We Know It Now
- Note Buying “Shifts” That Need To Be On Your Radar
- Resources Real Estate Note Investors Can Tap Into Right Now
- What You Can Be Doing TODAY
The Note Investing World As We Know It
There is no denying the impact of COVID-19 on the economy. The good news is seller financed notes do well in any economy. Why?
- Sellers holding good notes may need to sell and liquidate for cash.
- Hard to move properties may be even harder to move.
- More sellers and buyers need creative financing including wraps, sub2, owner financing, and lease options.
We don’t know exactly every shift that will occur but we do know we will adapt.
Remember, this is the moment you have been training for!
“Now is the time to hit play on growing your business while the rest of the world is hitting pause. – Donald Miller”
Note Buying Shifts That Need To Be On You Radar
- Funders will tighten up pricing and underwriting parameters and look closely at LTV, ITV, and location.
- On March 19th First National Acceptance Company, a large institutional note investor, announced they were temporarily excluding note purchases in California, Illinois, Nevada, New Jersey, Ohio, and Washington State. They are continuing their Premium and Standard note buying programs in all remaining states.
- Mortgage servicing companies will be overwhelmed with delinquencies. You need to communicate your workout plans and manage collections closely with your note servicers.
- Fannie, Freddie, HUD and various cities/states are implementing eviction and foreclosure moratoriums. If you have defaults be sure to know the rules in your area.
- Non QM lenders have essentially pulled out of the market leaving a demand that seller financing and private investors can help fill.
- Keep investing partners and real estate lenders informed. Now is the time to communicate and renegotiate terms if needed.
- The Paper Source Note Symposium scheduled in Vegas for late April has been moved to Sept 3-5, 2020. We are honored to be on the list of speakers and plan to share our Top Ten Lessons Learned in Five Different Decades. It’s a pretty good guess the “damn virus” will make the list.
Additional Resources For Real Estate Note Investors
- Find was to stay focused. We are big followers of The One Thing. They have opened up a free 66 day trial to their community during the pandemic.
- Stay informed on real estate and mortgage news with a free online subscription to HousingWire.com
- Many of the Real Estate Investing Clubs and MeetUp groups are moving online including this Note Investor Forum.
- We are continuing our support through Note Investing Tools including:
- Doubling down on content creation
- Releasing ready-to-use videos for your marketing
- Providing articles for your website
- Ongoing webinars and support
What You Can Do TODAY
- This is the time to BUILD your note business.
- It is a good time to review and improve your website including landing pages, email lists, and ongoing communications.
- Take a look at your marketing message including online, direct mail letters and postcards. Does it acknowledge reality? Is it appropriate? During this time focus on audience expansion…not revenue maximization.
- Take time to get very comfortable with creating seller financed notes and ways to calculate cash flow notes.
- Focus on the free or low cost forms of marketing like:
- Social Media
- Reverse Ad Marketing
- Bigger Pockets Interaction
- Content Marketing On Your Website
- Referral Based Marketing
- Take efforts to stay healthy and know we WILL get through this.
- Use any extra time to learn a new skill. This could be Zoom conferencing, WordPress, Yoast SEO, or an other skill that can move your business forward.
- Offer to be of service using your skills and knowledge.
In closing we want to say…
- We are ALL in this together. It will pass. We will rebuild.
- Every 10-15 years an opportunity comes along…this is it.
- We are here for you!
May you and your family stay healthy, safe and strong.
Tracy Z and Fred Rewey