As we look to 2021, I’m delighted to have leading property experts on the CarrotCast to help us anticipate what’s next. We’ll talk about monetary policy, micro and macro economics, changes in multifamily ownership, and what investors can expect the market to look like in 2021-2022. Today we sit down with Aaron Amuchastegui to Morocco Phone Number discuss foreclosures, the moratorium, and how to modify your post-COVID investment strategies to stay successful in a frenetic market. Be sure to subscribe to receive the CarrotCast every week! Subscribe on iTunesSubscribe on Google PlaySubscribe on Spotify While the foreclosure moratorium is helping homeowners keep their homes during the COVID pandemic, it’s also forcing investors like Aaron Amuchastegui to change their whole strategy.
Where We Are Today
There are experts who seem brilliant at what they do. And while many of them are, many have only been involved in real estate for 4 years. They only know the upcycle. They haven’t experienced a bear market or had to Morocco Phone Number adapt their strategy to make money even when the market is down. Investors like Aaron are in a much better position to provide insight into where we really are today. At the moment, the fish are inflated and the properties do not remain listed for long. It is a frenetic market, which is not sustainable. Look to the past to anticipate the future In 2009, when Aaron was deciding where to buy, he dove right into the data. Today, just like in the early 2000s, properties are flying off the shelves.
As in 2005, new homes are being sell before completion. With unemployment benefits falling and the moratorium on foreclosures set to expire in the coming months. Demand is certain to plummet, leading to lower Morocco Phone Number registration prices across the board. Aaron thinks that unlike in 2008, people today have more equity. They don’t refinance to buy toys or make ill-advised purchases. Back then, people would finance 100% of the purchase price when buying, putting them in the hole almost immediately. Today, interest rates are much lower and people are no longer making the same mistakes as when the bubble burst.