Real Estate Investments during crisis
There are many questions within the commercial real estate investment market as the COVID-19 crisis unfolds. When will the market return to normal?
If I have money tied up in real estate investments, can I use the capital to pay bills and my mortgage?
It depends on whether it is on properties that have not been critically impacted or if you have properties with low leverage, you can adapt part of that equity.
The challenge now is that the loan market for borrowers is uncertain. Money is available, but in often prohibitive conditions.
Should I expect new investments?
Most real estate purchases are being suspended or closed for a period not exceeding 90-120 days.
There may be options for timely investments in 2020 ?, depending on how long COVID-19 disrupts the economy. Good buying opportunities may include properties nearing the end of their financing term or limitations with problem operations. Loan maturities are dates that obligate homeowners to sell or refinance. Refinancing options have become much less attractive in this lending environment, which can lead sellers to take a sale discount instead of taking a low-leverage loan.