As real estate investors, there will always be distractions trying to take us away from the goals we have so thoughtfully created. From the news and the media to friends and family, we are tested daily on our steadfastness.
I know it sounds bold to call the current pandemic a “distraction”… but it is. In the grand scheme of life; it is just a distraction. Yes, I agree, that COVID19 is a big distraction, but big or small, we cannot allow it to stop us in our tracks. We must always be moving forward towards our dreams. You may need to revisit and revise your strategy to achieve your vision, but please don’t just stop.
Do you guys remember the last recession? Referred to as “Great Recession of 2008”, it hit the world hard, for years! … And then disappeared. What followed was prosperity and growth. It’s like a wildfire clearing a forest to make way for new life. It is important to remember that the Great Recession ended, and so will this recession. Out of the Great Recession came opportunity and millionaires were born. The same can be expected from this recession. So knowing that this will end, wouldn’t you want to be seen as the person who remained cool, calm, and collected while the world was panicking? Now, more than ever we must stay the course.
Yes, times like these can be frightening or confusing for investors. Some may think the world is ending, others may think the opportunity is coming. In one ear you’re people are screaming “buy!” in the other “sell!” and (in the other?) “hold!” The point is not to allow erratic thoughts to enter your mind from ANY ear.
Stick with your plan, and in the end; patience, understanding, and level-headedness will prevail. Take a breath, revisit your goals, and more importantly your strategy. Be smart about where you need to adjust technique and approach. Talk to those who have been through similar situations before and surround yourself with those even-keeled people.
If the market you are focusing on has solid fundamentals, it will continue to perform in the aftermath of the current pandemic. It may not be necessary to completely switch gears. Sometimes, small changes or tweaks are all that is needed to be successful.
However, don’t be ignorant of the current situation, and don’t be lazy, rather be diligent and willing to adjust your strategy to the market’s needs. That may mean holding off on capital improvements or renovations or adjusting rent and expense projections accordingly. Keep an eye on occupancy rates and talk to property managers about delinquency and overall community climate, and don’t forget to keep in touch with mortgage brokers.
If we truly want to overcome the short-lived chaos we are currently experiencing, I feel it is important to know the underlying reasons driving the changes in the current environment. This may require you to go deeper on analysis than you ever have before, but the result will only make you better, stronger. We also must avoid labeling these changes as “good” or “bad”. This only leaves us acting on emotion, faith, or hope and ultimately making decisions based on things that are out of our control – so no labels, no judgment.
Revisit your goals, rewrite them, chant them out loud, perform a seance ritual, make a vision board, and pray to it, kiss it, whatever; but get refocused!!! Stick to your foundation and training and, don’t freeze up now! Keep your finger on the pulse of what’s going on and continue looking at deals, just make the necessary adjustments in your analysis and underwriting. We got this!
In Atomic Habits by James Clear, he quotes Lao Tzu –
“Men are born soft and supple; dead they are stiff and hard. Plants are born tender and pliant; dead, they are brittle and dry. Thus whoever is stiff and inflexible is a disciple of death. Whoever is soft and yielding is a disciple of life. The hard and stiff will be broken. The soft and supple will prevail.”
Nico
