How To Protect Your Finances & Real Estate When The Next Recession Hits.
Are you ready for it?
One of the most frequently asked questions when speaking to new real estate investors is…
“Jeff what is going to happen when the next recession hits?”
And that question is often followed with…
“When will the next downturn happen?”
There is often fear among the masses and of course the media loves to play with people's emotions.
Based on these questions you can tell that the individual asking them is filled with fear uncertainty and doubt ( the FUD Factor!)
As the saying goes it's not IF there will be a recession it's WHEN will there be a recession.
With that said,I completely understand why a new real estate investor would be concerned…
And these are certainly fair questions to ask however, I don't believe these are the correct questions to be asking…
Many new investors are often asking the wrong people and receiving bad advice that instills more fear! Or worse prevents them from taking action...
Well fear not my friend because in today's blog post I'm going to share some insight that will help to put your mind at ease!
The truth is nobody really knows when the next recession will hit!
But as an educated real estate investor you can certainly build a lucrative real estate portfolio using proven systems that will protect your finances and your real estate.
The first thing I'd like to recommend is to never try to predict the market. There's a common saying in the real estate industry…
It's not about timing the market…. It's about time in the market!
So now that you know there's going to be a recession… and you don't have to worry about trying to figure out when it will be I want you to think about some different questions…
What action steps can you take this week to ensure your real estate is protected for the upcoming recession?
What action steps can you take this week to make your financial situation and real estate portfolio thrive in the next recession?
(*** I want you to notice that these questions come from a place of confidence and certainty rather than fear.)
I'm constantly reminding my one-on-one coaching clients that success in business, real estate, and life is 95% mindset and 5% execution.
I have been investing in real estate since 1998. I have gone through the downturn of 2008…
And real estate investors with years of experience and success will tell you that recessions are full of opportunity if you are prepared to take advantage of it...
Further more, I can assure you from personal experience that the largest fortunes are made during the toughest times.
I have helped many investors start scale, and manage, they're real estate investment portfolio…
And today my goal is to help you!
Here are a few coaching tips that you can implement to ensure that your finances and real estate will be secure when the next recession hits…
If you are an investor that currently owns real estate I want you to stress test your portfolio. What's the percentage of debt versus the appraised value of your real estate? could your portfolio survive if the market were to drop by 20% or 25% in rental income? you never want to over leverage your properties, and you always want to make sure you are cash flow positive... If your portfolio is over-leveraged you can always take steps now before a recession hits… For example you could sell off one of your properties that has a ton of equity and use those funds to reduce the debt on your other properties.
You can also do this with your personal funds. You want to make sure that you are not living beyond your means and that you have nice healthy reserve funds in your account should something happen… At a bare minimum you should have at least three months expenses for each property you own in a reserve fund... And and you should have at least 3 months of your day-to-day living expenses in reserve… This is a bare minimum and I would suggest you slowly manage your budget so that you can increase your cash reserve fund.
Unfortunately our banking system likes to lend money when you do not need it… and they make it extremely difficult when you do need the money. So I'd suggest you get as much access to capital now well times are good... For example you could start to improve your relationship with local banks, set up lines of credit, get another credit card that is for emergency purposes only, and start to build relationships with private money lenders… just to name a few.
By being proactive and positioning yourself for success now you will not need to worry about what will happen in the future…
And you can sleep peacefully knowing that your real estate portfolio is built on a solid foundation and can withstand a drop in property values and/or rents…
If you can do this now I promise you that when the next recession hits and real estate goes on sale you will be able to buy amazing deals from the real estate owners that were not educated and not prepared!
Remember the best investment you can make is in yourself education….
As I often say "success is not a matter of chance it is a matter of choice."
You can invest a little bit of money today to become educated or it will cost you a whole lot more in the future when you get hit with a bill from the school of hard knocks!!!
If you found this information helpful please share it with other people you C.A.R.E. about :-)
Until next time always remember " The More You C.A.R.E. The Less You Work"
Your real estate-based wealth coach,
P.S. When your ready here are a few ways I can help you start, scale, and manage your very own lucrative real estate investing company.
1. Join the C.A.R.E. community and connect with other real estate investors that are taking massive action. It's our new Facebook community where smart real estate investors connect, learn, and grow! Grow your wealth, Freedom, Impact, & portfolio! CLICK HERE to join today.
2. Book Recommendations. These selected books will help you build a solid understanding of real estate investing. See list now.
3.C.A.R.E. tool box. This is a list of free and/or low cost resources that every real estate investor needs to build a lucrative real estate investing company that will fund your desired lifestyle. Access your resources HERE
4. Work with me and my team privately. If you would like me to help you avoid costly mistakes and grow your real state business so that you can have the finances and time to fund your desired life let's chat. CLICK HERE to grab a complimentary strategy session. This way we can chat and get to know each other better. This is not a sales call I do NOT work with everyone. I want to see if we are a good fit and help you. If you decide you want to continue to work with me and you meet my criteria we can explore what that may look like. Because I am actively running my real estate businesses and value my free time I only work privately with a small select few every year. BOOK YOUR SESSION HERE.