Share
0 0 0 0

CRE Investing And Coronavirus — Here’s What You Should Expect

March 31, 2020

BisNow Webinar: CRE Investing And Coronavirus — Where’s Safe, Where’s Not

Key takeaways:

  • The quicker we mitigate risk, the faster we can get back to normal.
  • It’s time to begin planning to take advantage of the carnage that is on the way. Sellers will be more inclined to provide concessions.
  • In a “stay at home economy” Multifamily is the winning asset class

Worst Case Scenario:

Great depression – this long-term scenario is likely because of the various industries that are affected, although once contained, there should be an abrupt bounce-back.

Best Case Scenario:

Deep recession with a bounce back within 6-12 months

Other Notes:

  • Cash is King again! If you have cash, get ready for deployment.
  • 58% of people don’t have more than $1,000 saved and after 1 month, this becomes a humanity issue.
  • Communication – Early and often
  • Promote radical transparency within your company

Re-allocated resources:

  • Acquisition teams are also doing asset management
  • Whether it’s real estate or equity investments, don’t try to “pick bottoms”, choose assets that will perform 10+ years
  • Look for distressed sellers in the market

How is the residential market being affected?

  • It’s too early to tell
  • At the moment, no major changes have been made

Communicate with lenders early about issues about mortgage payments

What could be a long-term winning investment strategy look like?

  • The “stay-at-home economy” could be a positive for multifamily since tenants will now need a home office.

If you’re a seller, what do you do?

  • Tough this out and be prepared to trade in the warmer months when the virus will be at bay.

Hopefully the people who need help get it: millions of Americans going into unemployment.

 

SPEAKERS

Michael Episcope

Principal @Origin Investments

Michael Episcope is principal of Origin Investments and has 25 years of investment and risk management experience. Having cut his teeth trading on the floor of the Chicago Mercantile Exchange, Episcope believes that calculated risk-taking in inefficient markets is the key to building wealth. Michael is the former president of the DePaul Real Estate Alumni Alliance and a sustaining sponsor of the DePaul Real Estate Center.

 

Mark F. Bonner

Editor-in-Chief and Vice President of Content @Bisnow

Mark F. Bonner is the Editor-in-Chief and Vice President of Content at Bisnow. Prior to that, Mark served as the Managing Editor and Interim Global Editor-in-Chief of International Business Times where he led a multi-continent team of reporters and editors towards numerous international journalism honors. He led the website to become one of the 100 most visited websites in the world. Prior to arriving in New York City, Mark worked as a staff writer for various newspapers in the southeast United States, including the New Orleans Times-Picayune, the Baton Rouge Advocate and Mississippi’s Clarion-Ledger.