8 Million Renters Are Late On Payments
Tenants are falling behind on the rent in big numbers. It is an area of distress that is likely to grow quickly. It is the opportunity for savvy real estate wholesalers to help a lot of people, and scale up their own deal flow and incomes with a new niche.
The Rental Market Is Broken
Eight million renters are delinquent according to Bloomberg News.
This is probably just the tip of the iceberg given all that is happening in the economy, with massive layoffs, hiring freezes, insane rates of inflation, and a new recession.
In some areas rents are up 50% this year. Rents have grown so fast that cities and counties are debating new ordinances to cap rental rates, protect tenants from huge spikes, or at least make landlords pay more to evict them.
Those who haven’t taken up the chance to move to more affordable areas are finding even waiting lists for homeless shelters are getting incredibly long.
Meanwhile, many rental property owners have waited far too long to sell their assets. They are facing a much different resale marketplace now.
The Opportunity To Help Bailout Landlords
This is a great opportunity to help hurting rental property owners by buying their properties.
You can also still negotiate closing credits for evictions, security deposits, and other items to offset any additional perceived risks.
Even a low offer now could save them from a much worse fate. It is likely to be a much better deal for them than they may get for that property in the fall and winter.
Fuel Landlords With New Deals
On the flip side of this are millions of investors of one level or another who are desperate to find deal flow, and acquire new real estate assets with income potential.
You can be that connection.
Put those properties under contract. Get tenants performing or out, and wholesale them to a new landlord who is in a stronger financial position and is better at management.
There is still a lot of capital out there chasing deals. This huge surge in flight capital from the stock market and other assets into real estate may not last long, so take advantage of this strategy while you can.
How To Help Tenants
Of course, no one wants to kick people out in the street. If you can, help tenants to get back on top with a sustainable solution for staying in place.
If they simply cannot afford it, refer them to something more affordable, and find them a more graceful exit.
Then provide the place to stronger renters who can actually afford it, and need a safe, healthy, place for them and their families.
You can do a lot of good, and get paid very well for helping too.
