The Impact of Corona on Real Estate Investors

On this podcast episode, I talk about the impact of corona on real estate and how this will affect real estate investors, wholesalers and flippers. The great pricing reset of 2020 or what I like to call the “Covid 19 Effect” is related to how pricing in the real estate markets has been immediately reset for wholesalers, real estate investors and lenders. Cash buyers for wholesale deals are cautious right now and are either not buying at all, or they are expecting substantial discounts to move forward on a purchase. We have put a 20% safety margin on all purchases in place to protect ourselves. Capital markets are currently discounting pricing at around 80% to 85% which means they are willing to sell $100,000 loans that they originated a month ago for $80,000 to $85,000 just to get those loans off their books. So I think that a 20% safety margin works (for now). Could pricing get worse? We think it could. Ultimately this will translate into a pricing reset in the retail markets. The reason for this is because 22 million+ people that are laid off or unemployed because of Corona are not going to all be hired back immediately. That is going to take time (years). Many companies will fold and shut down for good. We have to assume that a good percentage of the 22 million unemployed people will be out of work for some period of time. Even if we assume that 17 million people are immediately hired back then that is still 5 million unemployed people. And for those people that own homes, if they cannot make their mortgage payments they will go into foreclosure. And that will result in an uptick in short sales and bank owned properties as banks are forced to foreclose and take the properties back. That may sound bleak. But the reality is that there are hedge funds and private equity funds with trillions of dollars that are ready to pounce on this opportunity. This will ultimately be an amazing opportunity to buy real estate and rental properties at a huge discount. And I don’t anticipate that discount to be around for too long. Since interest rates are so low, you can now borrow money at less than the inflation rate. I received a quote on a 15 year mortgage yesterday of as low as 2.25%. If you can borrow money at less than the inflation rate to buy an asset that beats inflation and that you will own free and clear one day then that is a winning formula. So my suggestion is use this as an opportunity to buy real estate. Lock in those low rates. Don’t wait to buy real estate. Buy real estate and wait.

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Incredible podcast!

This podcast is a must listen for anyone looking to level up their real estate investing strategies! Lex is a great host and his conversations with guests reveal everything you need to know to succeed.


Amazing Content!

Lex does such a good job covering a variety of topics. The guests offer valuable insight as well. I would recommend this podcast to anyone looking to be inspired and informed!


Absolutely Top Class!!!!

Excellent content from one of the top boots on the ground investor. Personally changed my life and my Real Estate investing career. Many thanks Lex for providing amazing content, mentorship and for sharing your knowledge and real world experience.


Invest like the best!

Whether you're a seasoned real estate investor or just dipping your toes in, Lex is the guy you want in your corner - and your headphones! I cannot tell you how much I've learned from this show. Thanks a million, Lex!

Arlie K

Excellent Content!!!!!

This is a wonderful podcast to listen to with such valuable content. I was very interested to listen to your take on why one should purchase rental property.


Best real estate investor podcast.

Lex gives you real tips with actual names of multiple sites and services to use from the beginner up to advanced. I feel he’s giving away his classes for free on the podcast. Most podcasts stop short of details and give generic advice unless you join there groups.


The Real Deal!

I’ve been looking to get into the world of real estate investing but everyone I ask gives me answers that makes it all sound way too easy. This podcast gives you the real deal. More please!

Anna B David

Great show for beginners or experts!

As an amateur flipper since I was in my teens, I kind of have gotten pretty good at identifying great opportunities and taking advantage of them. But, Lex dives much deeper and gives actionable tips on how to make sure you are looking at everthing before making any decisions. I'm hooked!

Mitche Graf

Be Prepared to Learn!

Two words: Information Dense. Sweet Moses. I’ve listened to other real estate investing podcasts but this by far is the most practical, the most hands-on podcast I have heard to date. You can tell that the host, Lex, is very passionate about real estate investing. That passion with his experience translates into an excellent podcast. He shares theory about a topic and then tells a story about his experiences in the real world. That to me is gold!

Cliff Duvernois