The COVID-19 pandemic has affected our world in nearly every way, but how has it affected real estate investment in Colorado?
To be expected, the initial panic in our world caused a slowdown in the real estate market. Many lenders cut back funding, changed terms drastically, limited programs, and even closed shop. Wholesale deals dried up, open houses were stopped, and the bidding wars came to a halt. Deals began falling through as a result, with some lenders changing terms or terminating deals within days of closing. Investors began panic selling their rental properties, and many flippers stopped in their tracks. The hospitality real estate market took a big hit, as travel became more limited. Airbnb bookings vanished, and many expected another real estate crash.
Here at Indicate Capital, we chose to go a different route. We continued business as usual, while respecting and honoring the stay at home order. Our phones rang off the hook, email inboxes were full, and the deal flow increased steadily. Our underwriting system was created for stability during all market fluctuations. We have been very encouraged by the quick rebound of the Colorado real estate market, especially in our niche investment sector. This difficult time in our world has provided great opportunity, and we pride ourselves in making these opportunities a reality for our clients.
It is safe to say the COVID-19 pandemic hurt real estate investing in Colorado in the short term. That being said, the market has rebounded incredibly, and the industry is booming. Bad lenders, agents, investors, and brokers are being weeded out through this transition, and the industry is becoming more refined then before.
If you have any questions about REI during COVID-19, give us a call at (303) 567-6334!
– Max Miller, Loan Originator