Message from the FIG Team
We know the current COVID-19 pandemic is affecting everyone differently. If you're in a position where you're still investing or considering it, read on. If the current crisis has your full attention and energy right now, that's understandable! We wish you well and hope to chat with you once this is all over (hopefully sooner than later)!
Things are changing quickly in the market right now as we all try to make sense out of this. We posted about how operations at FIG have been since this started (read the post here. And to make things even more interesting, there was also an earthquake in one of our main markets in Salt Lake City, UT. One of our nearby construction projects sustained minor damage as a result (update here).
All this being said, we're still forging ahead. If you've been thinking about investing and have pressed the pause button, we can't blame you for that. All we can do is give you as much information as we can as we all work through this pandemic together.
As of today, here is how FIG's various companies are faring...
1 - Land Acquisition and Development:
To date, we've not experienced any substantial delays as our development team can easily work remotely (and usually does anyway). There are some delays at the city and county government level, but all in all, essential employees are working.
2 - Construction loans:
Luckily, banks went into this crisis with a lot more liquidity than they did in 2008. We're still able to close construction loans. There are some delays here as most loan officers have been sent to work at home. They can't work at the same pace they usually do this way, but so far they're getting loans done. To date, banks have been deemed "essential" and have not had to close down.
3 - Construction:
With "shelter in place" declared in both Texas and Idaho, construction has still been deemed "essential" and is able to operate. Subcontractors are being careful and are working as best as they can (and have begun repairing a few cracked window panes that resulted from the earthquake in Utah).
4 - Property management:
This is an area where we have seen some impact. While we think it'll be short term, management companies across the country have had to alter the operating procedures to better protect existing and prospective tenants. Most showings are now done through video or through remote access (giving tenants access to a key box so they can see a unit themselves). Leasing appointments have slowed down dramatically. But online advertising traffic is high, which tells us prospective tenants are still looking for properties...they're just not going out to view them as much. We're crossing our fingers that this situation ends with the proper combination of speed and safety!
If you are in the market for a new construction fourplex—we have one fourplex that just fell out of contract (that can start construction very soon) in Starwood Farms in Cypress, TX, one fourplex in Pineridge Farms in Payson, UT. If you're an investor with a qualified opportunity zone need, we have some options in Blackstone Farms in Provo, UT as well.
Take care and be safe!
Fourplex Investment Group
Steve Olson, Chase Leavitt, Sherida Zenger, and Jon Metcalf