Due to the global coronavirus pandemic, real estate investors are wondering how to best proceed regarding purchasing properties. Social distancing guidelines state that people should:
● Stay at least 6 feet away from each other.
● Not gather in large groups.
● Avoid crowded places and mass gatherings.
Our society’s new rules leave many real estate investors at a standstill because most are used to dealing with people face-to-face throughout the buying process. In-person property auctions typically involve large groups of people and most buyers tour homes in-person either with a real estate agent, with the seller of the property, or with other interested buyers. All in all, the property investment process has historically involved plenty of human interaction, and investors want to know how to keep on investing while adhering to social distancing guidelines.
Thankfully, online home auction marketing platforms, like Hubzu, have made it easier than ever to find and bid on properties from the comfort of your home. In some cases, the entire buying process from browsing properties & submitting bids to closing can be handled online.
Select properties on Hubzu are also equipped with self-showing lockboxes that allow buyers to tour homes in person all on their own, ensuring that buyers can move through the buying process with limited human interaction. Virtual 3D tours are another option which allow buyers to tour properties online. For more details and better insight regarding how to buy real estate remotely during the coronavirus pandemic, continue reading.
Do your due diligence
Just because you’re buying online doesn’t mean you should skip the research you’ve always done beforehand. This means thoroughly understanding what you want to achieve with the property, as well as what amenities are most important to you. Here are some questions you should be asking yourself before placing a bid:
● Do I want this property to offer a long-term or a short-term ROI?
Are you looking to get your return on investment immediately, or are you okay with receiving your returns over a period of time? If you’re hoping to get your money back relatively fast, then fixer-uppers may be a better fit for you. Banks are usually looking to offload these properties quickly, which increases the chances of you being able to get a good deal. And the money saved on the purchase price can then go towards fixing up the property to flip it for a potential profit.
On the other hand, if you’re more interested in playing the long game, then you’ll want to look at acquiring a potential rental property. If you’re looking at a property and want to figure out if it’ll be a healthy rental property, then take the one percent rule into consideration. The one percent rule states that the gross monthly rent before expenses should equal at least one percent of the purchase price. Essentially, the rule states that a property should rent for at least one percent of its total upfront cost, which includes the purchase price, closing costs, repairs, etc.
Use this example as a guideline: A property that costs $100,000 should bring in at least $1,000 in rent each month, a $200,000 property should reach at least $2,000 in rent per month, etc. If a property passes the one percent rule, it might be a good investment to consider.
● What are the most marketable features of this property?
Buying during a quarantine means you can’t always tour properties in-person like you usually would, so you must pay very close attention to property descriptions and available photos on the property details page on Hubzu to uncover a home’s most marketable features. That said, don’t forget about tools like virtual tours and self-showing lockboxes that allow you to tour properties without ever coming into contact with another person.
● How will I pay for the property?
With the economic impact caused by the Coronavirus, interest rates have fallen to an all-time low. Plus, some sellers marketing their properties on Hubzu might accept traditional financing. So, if you were ever considering using a mortgage loan to pay for a property, now might be the perfect time to do it. Be sure to reach out to your lender to see if they have anything available that can help borrowers during these times.
What you need to know
Remember that many of the steps you took beforehand when purchasing a property can be mimicked when investing online. For example, you’re able to log into Hubzu and instantly gain access to thousands of properties with the touch of a button. Ensuring you’re able to reach a similar level of variety as before. In fact, buying online can expose you to more properties because you aren’t confined to your immediate area. You’re able to look at properties you never would have known about beforehand.
And when it comes to touring properties, feel comfortable knowing that several properties marketed on Hubzu are equipped with self-showing lockboxes and virtual tours. This way, you’re able to tour homes in person without ever having to interact with anyone or even without leaving your house.
Buy remotely with confidence on Hubzu
These are trying times and real estate investors can’t buy properties the same way they did previously. Thankfully, platforms like Hubzu are here to help ensure you’re able to continue growing your real estate portfolio without missing a step. To learn more, visit Hubzu today to begin browsing, bidding and closing on properties. To learn more tips and tricks about investing during the current COVID-19 pandemic, visit our dedicated resource page by clicking here.