Let’s look at the changing real estate investing landscape.
Bob Nelson, Eugene real estate investment broker
Bob Nelson: Let me touch on a continuing topic I’ve done for the last couple of days, and if you haven’t been tuned in at exactly 5:30, you’re not sure what those issues were.
Basically it has to do with you find yourself in an absolutely changed investment environment. We’ve never had the China virus. We’ve never, we who are still alive and kicking, have never seen a pandemic that is widespread. I’m old. I’m considered to be a geezer to a degree, but I wasn’t around for the Spanish flu, not quite.
Bob Nelson: Anyway, the long and the short of it. As we have a changed environment, there are people who are saying, “I don’t like what’s happening here.” And particularly those that are in smaller residential rental properties, properties where the tenant has been told by the governor of the state that you really don’t have to pay rent if you’ve been impacted adversely by the China virus.
Now, there is a document that you need to sign with the landlord that enters into this agreement and so forth. But the landlord can’t evict you for the non-payment of rent if you are one of those individuals whose employment has been impacted, your earning capacity has been impacted by the China virus.
Bob Nelson: Interesting situation. Some are saying, “I’ve got a mortgage payment and I don’t like the idea that my income stream, which covers the mortgage payment, is not coming in.” In fact, it won’t necessarily be faced until April of 2021, and that’s when the repayment plan kicks in.
And even then, it’s whatever repayment plan can be generated between the person who now owes a huge amount of rent and their ability to repay. A bad situation for those who have large mortgages on that type of property. And at that particular point, maybe your idea is how do I duck the bullet?
Bob Nelson: Well, there’s a number of ways of doing it. I did live through so far seven recessions. Some of them were very recessive, but some of them were real bangers and I’ve got several ideas that would help you if you find yourself in dire straits. Give me a call.
Join Eugene, Oregon, real estate experts: Bob Nelson, Real Estate Investment Broker with Pacwest Real Estate Investments, and Marcia Edwards, Residential Real Estate Broker with Windermere Real Estate, daily at 5:30pm on KPNW for the “Real Estate Today” radio show.