COVID-19 has forced a lot of changes on how the world operates and Casoro Group continues to adapt. During this recessionary environment, it is the perfect time to implement the company’s “buy low” tactic of the “buy low, sell high” strategy. GlobeSt.com reports that coronavirus has moved more multifamily deals off-market. One industry professional reasoned that listing a property right now creates the perception that the property is distressed so sellers are strategically keeping the listing off-market. Casoro Group is focused on buying properties at a discounted basis and we anticipate in the next two quarters that we will see some motivated sellers pop up in the market that allow us to find bargains and get a great deal
A second way Casoro Group has adapted is our underwriting. There are two facts that prevent us from achieving the rent premiums we usually underwrite in more aggressive scenarios; there are fewer people employed today and incomes have begun to fall. As a result, we have shifted our attention to well-located, B to A- Class assets in bulletproof locations where we can derive long term appreciation while driving a healthy dividend today.
Social distancing rules have provided challenges in acquisitions as well, as seventy percent of firms say they would not purchase a property based on a virtual tour. This has caused almost forty percent of firms putting all acquisition activity on hold. Casoro Group does not fall under the latter category. We continue to evaluate and underwrite new opportunities and leverage technology to compensate for our reduced physical presence.
Prior to the pandemic, we had been working on our vision to provide Better Homes for Better Lives where we look at programs and services that provide our residents with more than just a place to live. As we continue to shape and develop that program, it will prove even more valuable in the post-COVID-19 world.