Lex Levinrad Real Estate Investor, Speaker, Author & Mentor

On this podcast episode, I talk about the impact of corona on real estate and how this will affect real estate investors, wholesalers and flippers. The great pricing reset of 2020 or what I like to call the "Covid 19 Effect" is related to how pricing in the real estate markets has been immediately reset for wholesalers, real estate investors and lenders. Cash buyers for wholesale deals are cautious right now and are either not buying at all, or they are expecting substantial discounts to move forward on a purchase. We have put a 20% safety margin on all purchases in place to protect ourselves. Capital markets are currently discounting pricing at around 80% to 85% which means they are willing to sell $100,000 loans that they originated a month ago for $80,000 to $85,000 just to get those loans off their books. So I think that a 20% safety margin works (for now). Could pricing get worse? We think it could. Ultimately this will translate into a pricing reset in the retail markets. The reason for this is because