How is this scare affecting your business (and how should it?)

[John Stewart]

Things are scary right now for us real estate people, right?

I just read an article about how NY is proposing a CANCELATION of rent.

I also listened to a couple of podcasts from some of my favorite and most respected business idols claiming that we are on the verge of a major DEPRESSION...

I too have my own theories about the totally wrecked balance sheets, the terrifying overleveraging as in relation to income, and P/E ratios that are out of control of many of the world's leading corporations...not to mention why so many of the world's leading CEO's just stepped down in the last 6 months (google it) 

Given those facts, we may just be on the verge of a depression.  Or maybe we are not.  Who is to say?  That's not the point of this post.

What I want to talk about is the mindset that very few of us have, and why it will mean success for some and failure for others.  The craziest part is that most of you already know it!

Warren Buffet famously quoted, "when people are greedy, be scared.  When people are scared be greedy."

I'll admit, when I got my first tenant message me through my management portal saying they lost their job, I was scared.  They listening to brighter minds than my own claiming that there is a depression on the near horizon i got really scared.  But that is not how we make money.  I also realized that wholesalers have dropped prices across the board because everyone is scared.  I have lenders who are hungry to do a deal as well because so many people have put a pause on investing.

My mindset shifted a few days ago after remembering what Warren said, this is the time to be greedy.  There are certain things that are uncertain, but isn't that always the case?  The only difference now is that we have new uncertainties to deal with as opposed to uncertainties we are all used to dealing with.  

It has always been said, you make money on the buy, and now is no different.  When was the most money made in RE ever?  During the last great down turn, a time of unprecedented uncertainty.

The only difference here now is that you may not be ok if you buy a bad deal, like you were a year ago.  I am closing on 6 units in 30 days, with no change to lenders or how we operate our business.

Would love to hear from you about how this has affected you and your business!