This has to be one of the most unique time periods we’ve experienced for real estate investing. So many events are swirling around us now, coming together in the next few months. We have an election that may radically transform the way we do business. A virus pandemic that will come to an end soon with a vaccine. Or not. An economy that until eight months ago was on a tear, then dropped faster than we’ve seen before, and is now climbing back to the growth, unemployment, and stock market levels we had before the drop. And interest rates that

Six months ago we thought the pandemic would be mostly gone. Summer weather would mean we’re outside and not spreading the virus, medical research would produce a remedy, and we would all have changed our behaviors to prevent the spread. State and local governments restricted evictions but Fannie and Freddie offered borrowers forbearance. Once we looked that new word up, we decided maybe it wasn’t such a great offer. Today the picture continues to be muddy. The short term mortgage relief offered in forbearance will come due shortly, the CDC stepped up restrictions on evictions at a national level, and

Haircuts. Restaurants. Meetups. Camping. Open, closed, or something in between? How our states control these activities in a global Covid pandemic is informative. Would you like to invest in a state that has businesses closed? Or one where they are moving quickly to return to a pre-Covid normal? Are there more favorable business opportunities in states where they have stayed locked down? Are these states safer? Are states still in lock-downs controlling the spread of the virus better than states that have opened? All good questions when it comes to multifamily investing. Investing involves risk but how do you measure

Are you ready to invest based on what the world will look like when the pandemic is over? Most of us, including myself, believe the world will not return to normal postpandemic, and a new normal will emerge. Here a few thoughts. People may migrate out of cities so they can be away from crowds and less likely to pick up the next nasty virus. But I’m doubtful this will be a noticeable change. Businesses still set up shop in the cities and people still need to get to work. And we have a short memory, so fear of viruses

When do you decide to compromise your strict buying criteria? Crazy money chasing every halfway decent property, not getting deals, and you’ve been waiting for the big downturn to buy. Now the downturn has arrived, your powder is dry, and brokers are sending deals. But wait! These aren’t good deals. Sellers are reporting rent delinquencies and vacancies, but at this stage at least, they aren’t open to lower prices. Was this the big downturn? Is this the buying opportunity we waited for? Where’s the discount? And even more important, should we compromise our buying criteria so we don’t keep missing

Pursuing acquisitions has become difficult on so many levels, to put it mildly. Buyers have moved from years of having to play in a relentlessly hyper-inflated seller’s market, to a nearly complete absence of new properties being offered for sale. The virus has infected commercial real estate. Sellers and buyers don’t know how to price properties, so owners hang on to them. The issues buyers deal with today start with not getting inside units. Brokers can’t take marketing pictures, buyers can’t perform due diligence, and inspectors can’t inspect. A lot of lenders are not quoting loans on properties because of