What to Do Right Now

[Gabriel Graumann]

It's easy to buy into the narrative that we are living in uncertain or unique times. While there may be a small element of truth in those statements, the truth is that nothing we are experiencing now and likely are to face over the next 6-18 months or longer are actual uncertain or unique if you look at the history of the modern world. There have been pandemics in the past. There have been massive selloffs on Wall Street and other global markets. There have been oil shortages and oversupply wars that have caused volatility. There have been recessions and bear markets.

Yes, I would agree that the arrival of a flu pandemic on our shores was likely not the method by which the casual observer or even seasoned economists would have guessed as the trigger for our current economic situation. However, regardless of the trigger a down market was well past due and now here we are. The only question that should matter to those focused on investing is "what should I do right now?"

The answer is simple: Control what you can control, ignore the rest of the noise.

Pro tip: turning off the TV, news, and radio will greatly assist in this endeavor!

You can't control what the stock market does. You can't control how other people respond to the circumstances they are facing. You can't control (for the most part at least) what the government chooses to do.

You CAN control your mindset. You CAN control your effort & energy. You CAN control your amount of hustle. You CAN control the words you use & the narrative you choose to believe. You CAN control the conversation with your clients & customers, and co-workers for that matter. You CAN control whether you opt to play the victim of a bad market card, or choose to see this as an opportunity to grow, find deals, and create true value for clients & customers. 

Oh, and you CAN control your spending & lifestyle....though this one is often the most painful for brokers & investors who were used to living far above the bare minimums.

Practical steps to get lean & mean: Cut ALL unnecessary expenses. I'll help you define unnecessary too because this one seems to puzzle many people. Cable TV, streaming services, leased autos, financed autos (sell them and buy something you can actually pay cash for), and any subscription (personal or business) that doesn't increase your financial position. All memberships to health club, country club, golf club, knitting club, yacht club, social clubs, etc. Unless you are receiving ACTIVE deals & lead flow that materialize on a weekly basis from a "for-fee" networking group, drop them.

Get your time back and re-purpose those efforts on connecting with NEW people that have a problem that you can help solve. For a season this may include engaging your audience via social media outlets & webinars, which many people do but few do very well (myself included in the "not well"). Provide content that is actually HELPFUL, not just telling people what you need them to do for you. Find out how to truly help solve other peoples problems. Encourage people on your posts. There will be plenty of people spouting fear and discouragement, complaining and voicing all of their current problems out there. Don't be one of them. People need HOPE more than HYPE.

For you investors out there, there will be plenty of opportunities to make money, find deals, and find people to buy those deals if you don't or can't execute on them yourself. Just as in the recession of 2008/09, the tech bust in late 90's, the oil crisis of the 80's, investors made money in all of those cycles. It may be in new places than you are used to looking or in different segments of the industry, but there will be deals. Stocks have all taken a pounding and who knows how much lower it's going to go. In general, the market is down 30% across the board, which means the entire market went on sale. That's typically the best time to buy. It'll be a crazy, uncomfortable ride if you watch it daily, but if you buy then turn off your computer and burn the statements for a few years I'd be willing to wager nearly everything good company will be higher than it is today.

Housing deals will be aplenty as some people only look at the current situation and make emotional decisions. They'll want to sell at a discount just to get out of a deal and have some cash. Be the buyer, at a discount of course. All previous wisdom on how, where and what to buy still applies, you just get to be more selective on the price you're willing to pay. If you are looking at this purchase in terms of multiple years, you'll be fine. Flips and fixers (which I do several of yearly in Seattle area) may take a hit right now in many market as limits are in place to keep people home, but that doesn't mean nobody will buy or sell a house. As recently as yesterday I helped a buyer close on their property purchase, later toured an investment buyer through a 2-lot home sale for spec build on one lot and fix up the existing into a rental, and today I am hosting an owner-user buyer of a commercial building through the property he's had under contract for 2 weeks and is still moving forward on.

Yes, some deals will die. Some clients will choose to be passive. Some deals that looked good 1 month ago might look very good today. We overcome all of these potential negatives by looking at more deals than yesterday, talking to more people than yesterday, and definitely reassuring more people than yesterday.

Hopefully this helps someone on the fence about whether they are in the right spot as an investor, broker or other real estate professional.