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 the risk you’re taking by investing in a locked down state vs. an open state?
I watch the daily case counts as most people do, and so far there is very little correlation between the recent spike in new cases and states’ open/closed status. When a state decides to open, or to remain open, the message emphasizes the importance of a functioning economy, but the message becomes mixed when certain population groups interpret no restrictions as free reign to behave carelessly. Stimulus payments won’t last forever and when people are out of work, no income, no health insurance, their safety may be just as threatened as it would be if they were working.
Fortunately the light at the end of the tunnel is getting brighter. Rest assured a vaccine will arrive, most people will take it, life will return to normal, and they’ll need places to live. Now is not the time to be timid. Decide where your best real estate opportunities and move forward, decisively. If you wait until this is over, you’ll be joining a herd of patient investors with piles of dry powder.