What Is Your Plan “C” (as in “Comeback”)?admin
I was able to learn from one of my mentors, Jeff Watson, about how real estate investors can come back from losing it all. Please read the following carefully!
The current real estate market is at an all-time high, and inventory is at record lows, but it will not always be this way. I am reminded of 2005 through 2008. In 2005, I had a 7-figure net worth (and the ego to go with it!). By 2008, my net worth was a sizeable negative number. Let me share with you some commonalities among those of us who have come back from such difficult situations.
- Do not panic.
- It is never right to do wrong to do right. Even if you lose everything, don’t misappropriate someone else’s money.
- Your relationships are the most important resource you can have to stage a strong comeback. You might say, “But all my relationships are people like me. We have only been investing for 5 to 10 years. We don’t know what a down market looks like.” Then it is time to change the circle of your relationships. Find other investors who have been through the fire, crawled through the valley, and come out again on the upside. Even better, find the investors who last time didn’t lose it all but sure learned some important lessons.
The tech bubble of 2001, the great recession of 2007-2012, the COVID crisis of 2020, and other significant events clearly show us that real estate investing can be unpredictable, and you need to plan for uncertainties and surprises.
How well are you doing on building the relationships and resources to help you anticipate and get through the surprises that will inevitably show up? No better place than the Toledo Real Estate Investors Assn every 2nd Tuesday!