Goldmine Properties, Inc. Real Estate Strategy During COVID-19

1. GOLDMINE REAL ESTATE
STRATEGY DURING
COVID-19
MIKE CHERWENKA
CEO GOLDMINE PROPERTIES, GODFATHER OF FIX AND FLIP, MARKET TRADER
TOLLA CHERWENKA
BIG DATA SCIENTIST, IT SOLUTION ARCHITECT, REAL ESTATE AGENT

2. REMOVE FEAR THROUGH GRATITUDE
• Showing us that we are dependent on something much bigger
• Gratitude for life we took for granted; health, products
• Focus on basic things
• Set what we thought was important aside for what is important
• Improved air and water quality
• We are facing fear with love and community support
• We understand that we are all globally connected
• The world has unified in battling a common enemy
*Always find the silver lining and solution during times of fear and instability

3. CURRENT STATE OF THE MARKET
• Roofstock, a platform investors use to buy and sell single-family rental properties,
has seen huge spikes in web traffic since the outbreak of the virus, as global
investors look for less volatile investment options.
• Investors are moving their money into hard assets, like real estate, according to
millionacres
• Fed drops interest rate
• Senate approved emergency funding
• Stimulus package approved

4. MARKET NEWS
• Home builder confidence has skyrocketed in recent months, according to the
NAHB. This signals that builders are more inclined to start construction on homes.
To wit, new home sales—largely dependent on how many homes are built—have
spiked dramatically in recent months, as have construction starts.
• Video Home Tour Requests Soar Nearly 500% in One Week

5. AFTER INVENTORY SPIKES IN JANUARY 2019, HOMES
FOR SALE DROP BACK DOWN TO RECORD LOWS

6. REAL ESTATE MARKET FACT
• There is no question that coronavirus (COVID-19) has crippled the economy with
vast uncertainty in the short-term, BUT one thing for certain is that real estate is
not going anywhere.

7. THE UGLY
• (Non-QM loans) Non-qualifying mortgage loans are on pause, only FHA
government backed loans are available.
• Most Hard-Money lenders use institution money which are not available.
• Airbnb Reservations are being cancelled

8. INVESTMENT STRATEGY
• Buy and hold property comprised of Housing Choice/Section 8 tenants where
possible
• Buy wholesale properties, renovate, refinance, rent to take advantage of low
interest rate (Note – Reduced competition - wholesalers don’t have to compete
iBuying business model , Zillow offer, OfferPad , etc. — in which companies use
technology to make instant offers on homes and then sell those properties for a
profit)
• Convert Airbnb that are impacting to rentals with micro lease options e.g. 3
months, 6 months and then convert back to Airbnb
• Keep buying but keep your wholesale and rehab inventory.

9. PRIMARY HOME OR INVESTMENT PROPERTY SELL
STRATEGY
• Get an agent who can think outside the box during challenges
• Live Open Houses
• Virtual Tours
• Facetime Inspection
• Quality Staging
• Mail-away Closings

10. REAL ESTATE MARKET HISTORICAL FACTS
• Zillow conducted a study on housing during previous pandemics and concluded
that while home sales dropped dramatically during the pandemic, home prices
stayed about the same or suffered a slight decrease. This makes intuitive sense
because it’s harder for prices to change when there are few transactions. In short,
previous pandemics have simply put the housing market on pause.
• When investors start thinking the stock market is too risky—like right now—they
sell their stocks and buy bonds. The increased demand pushes the price of bonds
higher. The higher the price of bonds, the lower the interest payment—called the
yield—is relative to the price. When bond yields are lower, mortgage rates are
lower, too.

11. • Some of the Hard Money lenders we work with in the past have adjusted that lending
criteria. If you are a cash buyer, or if you need help with a hard money loan, allow me
to connect you with the resources needed to prosper during this time...
• The interest rates are at a 10 year low on the retail side. Also the current retail
housing supply does not meet the 6 months standard per current data.
• Despite the current market changes, I see a strong foreseeable future for investors
due to the market shifting from a "seller's to buyer's market".
If you are still seeking inventory for purchase, please respond with your all-in cost
rehab tolerance – mcherwenka@aol.com

12. NO ONE IS PREDICTING A LONG-TERM RECESSION.
HAVE A SHORT TERM PLAN.

13. DO YOU HAVE RENOVATIONS YOU
WOULD LIKE US TO STAGE, LIST, AND
SELL ON OUR NEW T.V. SHOW THIS
YEAR?
CLICK HERE TO LET US KNOW