Student Housing Contracts & COVID-19: What will Happen?

Freedom First REIA, LTD

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Landlords that rent out their properties for off-campus housing may be facing a bind. The COVID-19 pandemic has caused world-wide disruption in countless ways, creating economic issues. The housing market is no exception.

When it comes to student loan housing, landlords face the present challenge ahead. Some college students have left to be with their families and others have lost their jobs that pay for rent. This causes a dilemma for landlords that house off-campus students across the nation.

While students are trying to get out of contracts early, this creates a situation for the landlord. How will landlords bridge the gap?

For landlords that count on the rent to pay the monthly mortgage on the rented property are in a tough spot.

There is certainly compassion for students and landlords stuck in this quandary. If students are released early from their contracts, landlords bear the financial brunt of  the truncated agreement. 

“As the student housing industry grapples with how to respond to the pandemic, there is much uncertainty with how this will impact markets and leasing velocity,” says Christian O’Lone, regional property manager with DMG Investments. As stated via stud
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The Feds Are Stepping Up Support For Small Business

Utah Real Estate Investors Association

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How are you holding up? If you haven't yet done so, please do shoot me a quick note to let me know how your business is managing.

Thanks to those readers who responded this last week. Seems all are doing well.

Depending on the situation, I have lots of ways to help ... some of which I'll give you details about today.

I will continue to be posting here more updates than normal, as there are rapidly unfolding NEW credits being considered (even as I type) by Congress, as well as a bunch of emergency actions done by various departments under the executive branch ... all designed to help YOU.

I do believe that we will get through this. This isn't a medical or epidemiological opinion (neither of which I'm particularly qualified to offer), but rather a statement about the confidence I have in my readers, my clients, and our communities, and the businesses they represent.

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How Do I Keep My Airbnb Occupied During COVID-19?

Utah Real Estate Investors Association

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The name of the game is to pivot, the vacation rental industry is not what it was 10 days ago. If you are not sure you want to work crazy hard, staying in this industry may not be for you. In the last 10 days I think we have worked harder as a company than ever before, and probably made far less proportionally as well. I’m not sure the accuracy of the stats but 80% of existing reservations were cancelled, with an estimated greater amount where the reservation was kept because a refund could not be awarded. Airbnb’s cancellation policy override has crushed many hosts, but we are seeing now more than ever there are NEEDS for flexible housing options.

I love what we do as a property management company, especially now that we have the opportunity to provide housing for those that desperately need it. Lives depend on medical workers and necessary staff in many industries, we can house those staff and others. If you want to stay in the industry the time is now to pivot or take a break. 

Here are entirely too many ideas to keep your units occupied, you choose which ones work for your units, markets and situation. 
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Temporary Pause on Evictions and Foreclosures: Will it be Enough?

Freedom First REIA, LTD

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New York State, among other states, has taken action to halt evictions during the current pandemic. New York’s Chief Administrative, Judge Lawrence Malks, stated in a memo that starting Tuesday, eviction proceedings and pending eviction orders will be suspended statewide until further notice.

The White House also issued a press-release stating HUD, Freddie Mac and Fannie Mae will suspend foreclosures to the end of April. If the health crisis continues at this level, that won’t be enough. 

That’s roughly one monthly mortgage payment for some mortgages. 

If evictions are postponed indefinitely, but mortgage lapse has a time limit until the end of next month, the gap is concerning. Landlords, rightly so, worry that if renters  are unable to pay longer term, then how will the property owner pay their lender? Small-scale proprietors making up the difference isn’t a solution, another adjustment will have to be made in the near future.

Are there additional actions that can be made in the longer interim? Comment below with any beneficial thoughts, opinions or solutions.

*Because of the fast-changing pace of information during this time, all details above
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Let's Get Real for RIGHT NOW...

Utah Real Estate Investors Association

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No, this is NOT just another "here's what we're doing about COVID-19" message.

The time for that was last week. Every brand and their brother sent out those messages, and they lost their usefulness -- right now, it's a marketplace expectation that we're all taking serious steps.

Regardless of what you feel about this situation, or the governmental response to it, it's time that we recognize that the ground has already shifted under our feet.

You can waste your (precious) breath to rail against that, or you can get productive.

But more about that in a moment.

For now, you don't need any medical advice from me, nor would it be beneficial for me to share with you my "work from home tips" (though those will be coming sometime soon).

Instead, I'm going to stay in my lane, and get real with you about your business r
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Coronavirus & Investing: What's Your Opinion?

Freedom First REIA, LTD

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Is the spread of coronavirus cause for concern when it comes to investing in real estate?

Although we shouldn’t take this turn of events lightly, there is no need to be over-alarmed. Panicking disrupts versus constructively approaching the issue with a level head. As investors, it's important to have a beneficial conversation about the potential impact.

We want to hear from you, what are your thoughts and opinions? Please share in the comment section below.

Here are some resources to read and consider:

https://www.fool.com/millionacres/real-estate-market/articles/how-the-coronavirus-could-impact-the-american-real-estate-market/
https://www.curbed.com/2020/3/6/21163523/coronavirus-economic-impact-housing-market
https://azbigmedia.com/real-estate/the-coronavirus-impact-on-the-real-estate-industry/
https://www.kirklandreporter.com/business/real-estate-coronavirus-mortgage-rates-and-inventory/

 


How To Succeed When the Market Crashes

Minnesota Real Estate Investors Association, Inc.

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Imagine this scenario… 

You find a good piece of real estate that you decide to buy. 

You have little money to buy it, but you decide to use whatever money you have as part of your down payment. 

You get qualified for a 90% LTV loan. 

You call around and you are able to raise the remaining money you need for the down payment from your close friends and family. 

You promise to pay them a generous interest rate of 8% for lending you their hard-earned money. 

The following month, you find another good real estate property that you want to buy.

You have no money to buy it, but you know you can raise the money. 

You have great income and credit and once again you get qualified for a loan with 90% LTV.

You call around and you are able to raise some of the money from your close friends and family. Again, you promise to pay them a generous interest rate of 8% for lending you their hard-earned money. 

This time, you remember about a line of credit you have, and so you decide to use all of it to close the deal.

You’ve now raised
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Going Broke By Going It Alone

Utah Real Estate Investors Association

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"Things are never quite as scary when you've got a best friend." -Bill Watterson

Perhaps the most epic image of American excellence is the picture of the "rugged individualist". You know, Teddy Roosevelt, pull yourself up by your own bootstraps, etc. In many ways, this image formed many characteristics of the fabric of our nation that have led to great prosperity.

But here's the problem: it is (and has always been) an illusion.

Or at least, our interpretation of it is. The rugged individualist who can solve his or her own problems (the opposite of an entitlement mentality) IS a great standard.

But in most parts of life, your business very much included, you simply can't do it all yourself.

Or, if you do, you're going to find that you sacrifice the things you're very good at for the things you either are barely competen
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Three Key Tips to Property Management: with Karl Weekes

Freedom First REIA, LTD

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Is property management easy? 

If you go into it blindly, you may end up learning some lessons the hard way. It helps to have a set of resources, tools and advice going into property management that others have learned along the way.

Karl Weekes has over 35 years of experience and lessons learned along the way. We won’t be sharing all of his advice today, but here are highlights to consider when investing and maintaining a property. Make sure to join us for the upcoming session on March 21st for more!

1. Attract Quality Tenants. 

One of the most important lessons is to learn how to attract and identify quality tenants. This aspect directly effects the income and expense side of the equation. Bad tenants could ruin you and wipe you out. This is key to maintaining sustainability in managing property.

Deals and all negotiations with tenants must be a win-win outcome to succeed. The art of listening is an important part to this equation.  Creative problem solving is very rewarding - go for it!

The tenant is the lifeline to financial success. In the upcoming session, we’ll talk more about how you can attract the right occupant.

2. Educate & Equip

Never undervalue the importance of education, networking and mentorship. Make sure you are educated on what you are getting into. This is essential.

You need to have the real numbers and put them in a cash flow analyzer before you start investing. Acquire your property the right way, with all of the information up front. Know answers to questions like “What is the vacancy rate?”; this varies by area. Find that out and know your market.

For longevity, make sure you have a team of people, this is not a solo act: a real estate agent, insurance consultant, attorney, skill set advisors, coach and contractors (just to name a few). There are so many different jobs when owning property, you need to know what it entails beforehand, whether you do it yourself or have someone you’ll hire to do it for you.

You thought you bought an Investment ?  Nope you bought a business and it’s not a hobby – treat it as such. This an active investment not a passive one – make sure you have the time and understanding that this is an “on the job training” and it’s a time involved endeavor!

There is so much to know and understand to succeed. and it changes DAILY - becoming a member to a group like FFREIA is a fast track to get there. the networking and educational opportunities are second to none.

3. Plan, Adapt & Adjust

If you are in it for the long haul -  establishing an "operating system" is  mandatory. What is an OS?  again a constant moving system - Process, procedures, forms, establish criteria etc.so that the system works for you and you are not a slave to your properties.

You want an automated process, especially when it comes to quantity.

Have a plan and system but be ready to adjust when the time comes. Learn to adapt and adjust - Managing properties is a moving target on a daily basis. Rules, codes, Market forces etc.. change literally in a daily basis. Change is inevitable. Deal with it!



All of these tips directly impact your income and expense side of the equation or the deal - whether its success for failure - you want to be on the SUCCESS side.

For more on property management, make sure to check out the Investor Academy conference with Karl Weekes. He’ll be diving into more content and will share his years of expertise and lessons learned.Meet like-minded investors and gain knowledge about long-term investment. Visit: ffreia.com for more details and to register.

Hope to see you there!

Estate Planning for Real Estate Investors

Utah Real Estate Investors Association

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"Go as far as you can see; when you get there, you'll be able to see further.” - Thomas Carlyle

When a person with assets over $100,000 passes away (as is the case with MOST business owners), their assets will be handled in one of three ways:

(1) if they had no will, their assets will be distributed as mandated by the state probate code through a court proceeding called probate;

(2) if the person had a valid will, the estate will still have to go through the probate process, but the court will carry out their wishes as stated in their will; or

(3) if the person had a valid living trust (and their assets were re-titled in the name of their living trust), their wishes would be carried out in private, without the court's involvement. 

So ... why does this matter to you, as a business owner?

Leaving aside the issue of w
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