In light of COVID-19 the guidelines surrounding “essential businesses” have spurred great debates about the intricacies of “essential businesses”. Many businesses including those in the real estate sector continue to operate under a new set of confusing guidelines and rules on a per state basis. According to National Association of Realtors, “there are about 9.5 million jobs in the real estate, rental and leasing industry, and every two home sales generate one job in this country.“ It is no question that the real estate industry is the backbone of the American economy and lifeblood of the American dream. Unfortunately, all stakeholders in the real estate industry are seeing drastic changes to their business. Two months ago, rents were rising, deals were moving, and people were refi-ing. We now see options to defer rent and mortgage payments, government backed eviction protection, and an uncertain American consumer. The next 9 months will enviably be unpredictable, and no two models projecting the stability of the housing market appear the same. While deal flow has grinded to a halt, we question if it is a good time invest in properties that will soon be offloaded. At EM Capital, we are working with all of our tenants and partners on payment plans as we are emphasizing health and well-being. In addition, we see this an opportunity to search for opportunities that meet our acquisition criteria and are in need for a management turn-around. To those looking to invest now or questioning your current investments. We are building out a database of real estate resources to utilize during this time. Stay tuned.
https://therealdeal.com/2020/03/31/homeland-security-says-real-estate-is-essential-business/
https://www.housingwire.com/articles/do-realtors-provide-an-essential-service/
https://www.bestchicagoproperties.com/blog/impact-of-coronavirus-on-chicago-real-estate/
