Matt Skinner is a multi-unit real estate investor icon located in California, and those that have invested with Matt Skinner are all ears when he has something to say.[1] Although Matt Skinner shows great concern and sympathy for all of those effected by this unprecedented virus, he is also quick to point out the business end that is inevitable, no matter what happens down the road.  More importantly Matt showed great facts behind the theory.

Headline News journalists real estate investing seminar attendee, Mitch Harrington, recently took a online webinar of Matt Skinner where he first heard of this theory. Harrington explained the thought process as a very simple explanation.

“Considering China is the biggest foreign purchaser of residential property since The National Association of Realtors’ (NAR) 2019 International Activity in the U.S. Residential Market, accounting for $13.4 billion of $77.9 billion, or 17.2% of the foreign market share, the coronavirus might considerably impact financier activity, but remarkably in a favorable method.[2]

“Just recently, China’s foreign investment in American real estate saw a decline, which lots of financial experts’ attribute to the lower stock in the U.S., the U.S.-China trade war, and the reinforcing dollar.

“But as self-confidence in their own real estate and other foreign markets falters, investors are moving their money into hard possessions, like real estate, in areas like the United States, who to this point has not suffered greatly from the spread of the disease. Roofstock, is a popular online market genuine estate investor to acquire or sell rental real estate, has seen a 450% increase in traffic from Asian countries in the previous month.”[3]

Headline News spoke to Matt Skinner about this theory and Matt told us this, “I have a knack for finding multi-unit apartment buildings and either renovating them or simply purchase at the correct time significantly below market.  Then my investors and I will either cash flow the multi-unit’s or sell and make a great profit.  So although this virus is beyond a horrible reality, in my business It is simply a matter of timing, and for all the wrong reasons, it has opened a window for my business and I would not be doing my due diligence if I was to not capitalize on it for my investors.”

Skinner went on to say this, “Unfortunately, only time will tell how the coronavirus will impact the real estate market. There is no doubt the coronavirus will impact the American economy and real estate market in some form, but no one truly knows to what extent.  

“My advice is this, savvy investors should keep a close eye on these developments, as well as continue to track mortgage interest rate changes and any government stimulus packages enacted to help ease the impact of coronavirus on the overall economy.” Matt gives a free book on these types strategies, here.

In general, the overwhelming opinions of financial experts and real estate experts like Skinner and alike seem to agree on these facts. As a prudent investor, people should stay focused on factors that could change the outlook.[4] For example:

• Quarantines and social distancing will create slower revenue and growth in commercial real estate and may cause increases in defaults on commercial loans.
• Uncertainty around our future economic outlook may move some buyers to the sidelines (reducing demand) and may induce some sellers off the sidelines (increasing supply).
• According to Green Street Advisors, real estate investment trusts (REITs), usually safe havens during stock market declines, have been surprisingly hard hit by recent volatility.
• New construction projects could be delayed by supply chain disruptions or possible labor shortages.
• Travel and related industries could have a ripple effect as major air carriers make significant cuts to their schedules and begin to ask staff to take unpaid leave.
• Realtor Colin Smith reports that some of his lending resources have seen lack of activity on large blocks of mortgages for sale. If that becomes a trend, mortgage brokers could face difficulties generating capital for new business.

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