Why Covid 19 Might Not Change Your Real Estate Investment Plans
Don't Let Corona Virus Slow You Down
You may be surprised to learn that real estate deals are still transacting.
Request for property tours, although they have been greatly reduced, are still being requested. While I concur that it may not be the best course of action for your tenants but nonetheless requests to show are being submitted.
Closings are happening. Transactions subject to conventional financing and cash deals are closing. Based on activity from the multiple listing service the last 4 weeks South Florida has closed....
Approximatly 97 transactions were closed in the past 30 days for Residential Income Property (2Plex, 3Plex & 4Plex properties). Here are some of the numbers.
- Total Sale Velocity $48,125,676
- Average Sale Price $501,309
- Average Price per Unit $200,523
- Average Price per Sq Ft $233.08
- Over 200 new properties have been brought to market within the past 30 days
Commercial Properties including apartment buildings (5+ units), retail, warehouse and office showed 61 transactions sold for the same time period
- $73,639,263 representing 61 transactions have closed in the last 30 days.
- 594 new properties have been brought to market in the last 30 days
- $61,674,263; Representing 50 non-residential transactions
- Apartment Sales: Total Sale Velocity $17,795,000 represented 11 Apartment Buildings have sold and 36% of the sales were sold by Peter Dacko/Media Realty)
- Average Price per Unit $130,845
There's No Reason to Wait
Question: If you've been contemplating the disposition of your asset, I’d like to offer a free, no obligation service to provide you with the best information which will allow you to make the most educated decision.
This info is called the "Proposal to Market". It includes a rent survey, to see if your rents are at above or below market value as well as a complete forensic breakdown of your comparable sales which would include, unit breakdown, price per square foot, price per unit, capitalization rate and a gross rent multiplier.
The proposal to market is to be used as a baseline reflecting market value for your asset. I believe it is from here that a conversation could be had with regards to how far you can push market value.