My first experience with a real estate downturn was in 1989, I had bought a first duplex & believed the hype that real estate could do no wrong. I learned a valuable lesson that you must pay attention to the real estate cycles to be successful.
We are in the beginning of a what I believe will be a very painful correction for those that haven’t played the investment game smart.
The basics for surviving & actually thriving are critical.
Get rid of bad property: this is not the time to hold anything that doesn’t make sense. You can not predict the turnaround & it will be painful if you own a negative cash flow property that is decreasing in value.
Find Cash: Keep your powder dry, raise cash, connect with investors & lenders that you can tap for cash when you see a great deal. The key to building a huge fortune in the next few years is to seize opportunity when it presents itself… and there will be many chances if you have the resources ready to pounce.
Get educated: You better know how & what to do to find the best deals. Appreciation is not going to bail you out of a bad deal. You better have the edge by using your smarts. Develop & refine your deal making skills.
Find a steady stream of deal flow: Don’t follow the crowd, you need to develop a niche on how you will spend your time & marketing dollars. This will increase your chances on making a deal that makes sense.
Create multiple streams of income: Don’t be in a position where you have to make a deal to put food on the table. Create steady bread & butter cash flow to keep you in the game.
Network Network Network: relationships are important to develop more than ever. Know what is going on in your market & who the players are. I call it staying in traffic. You will find out what is happening in your market & follow the money. Find out what people are buying & make sure you are selling .
Be patient: this cycle may take a while so buckle up & don’t be in a hurry. The bottoms are hard to time. Make sure you have multiple exit strategies for everything you invest in.
If you want learn more about how I am expanding my network & creating an additional income. Drop me a line at ellis@moonlightcapital.com
Happy Investing !
