Owning Real Estate is one of the quickest ways to build wealth. A property allows an owner to use the equity they have to purchase other properties, sell for a profit, or leverage as collateral. That is why so many Americans strive to be real estate investors. Investing in real estate is similar to the stock market, market trends will rise and fall, but to those that can hang on to their assets for the longterm typically see the best return. Knowing this, many investors are constantly adding to their real estate portfolio; buying any property they anticipate may generate a great return. In most cases the investors with the multiple properties are the most prosperous, but lately that tide has begun to turn.
For years business was conducted as usual through wars and times of adversity in the United States, with minor adjustments to keep things going. This sense of business as usual was turned upside down in 2020 as the coronavirus pandemic made its way to the United States. Over estimating this virus, the United States, as well as most of the world brought their economies to a grinding halt. For the first time in history monthly bills such as rent and mortgages could be deferred until life was back to normal. Nearly three years after that eventful year, some of these unprecedented measures are still in place. Those who depended on rental income to pay their bills had a rather difficult year in 2020.
Not only could tenants elect to not pay rent, landlords could do nothing about it. The federal government placed a ban on evictions regardless of a tenants employment status. Counter intuitively to the state of the economy, the real estate market boomed during this time as mortgage rates were slashed to historic levels. Many of these tired land lords living in North Carolina decided to sell their properties that neglected to produce income in the following years.
Fortunately, the ban on evictions is long gone and for the most part the economy is back to business as usual. Unlike the massive boom the US economy experienced as a result of printing unprecedented amounts of money, the economy is beginning to contract and display parallels to both financial crisis in the early 2000s and late 1970s. Landlords that have held on to their properties through these eventful past few years have seen their properties values rise and now beginning to fall. To many landlords, the government over reach during the pandemic combined with problem tenants that fail to pay after the pause on rents has concluded, have had enough. According to the National Association of Realtors, home sales are up 9.6 percent from a year ago. The lucrative business associated with being a real estate investors has begun to dissipate.
Landlords once hoping to increase their monthly income by acquiring multiple properties have been forced to rethink their strategy. The benefits of owning a rental home is apparent when the tenant pays their rent and maintains the property well, unfortunately, those tenants seem to be numbered since the pandemic. Many investors are seeing the tail end of this prosperous real estate cycle as their way out of these headache properties, and to those living in Greensboro, North Carolina, they may be right. Helpful Homes is a locally owned and operated real estate acquisitions company in Greensboro that specializes in restoring homes to their former glory, whether that means fixing them up as rentals or selling them to a new family. They offer a fair cash offer and guarantee a closing within 30 days, free from appraisals and contingencies. If you or someone you know finds themselves dealing with rental properties that are more of a headache than lucrative business, call Helpful Homes and get your cash offer today!