I've been really busy so here is a short blog today.
I have been having conversations with someone wanting to take the plunge in real estate. This reminded me of how valuable a Real Estate Investing Association is. They have helped me tremendously with networking, running a business and coming across new ideas. I cant stress enough joining one. Visit a few before you join for they are not the same or I outgrew the group. See if they will stretch your thinking and mind. If you join because they just say what you want to hear then it is waste of time and more of a social gathering with people patting themselves on the back.
The fewer surprises in business the better. Volatility, uncertainty and not knowing where and what you want to accomplish aka goals are detrimental to business. If you, partners and workers don't know what is going on and what the goals are you are going in circles in a big ocean with limited supplies. Eventually you will get frustrated, run out energy and be adrift like the vast majority of other businesses. Its not the business is bad or ill conceived it is the lack of focus and lack of goals that kills a business. That and poor management.
If you have time at home due to the Wuhan virus what are you using it on? I am staying busy myself with renovating a home in Tiffin but when I'm not doing that I am researching stocks, getting on webinars about real estate and finances and reading. If anything I am busier that I have been. I missed many opportunities in 2008 because I didn't have enough knowledge. I did ok but I could have done vastly better if I was prepared. For those working for someone or company and you have down time I HIGHLY suggest picking up a book, take a class, learn a trade or start thinking about a way to make some money on the side. In the next few weeks things will start panning out from this virus and be revealed. Some won't be hired back and some will not start there business again. I think companies will streamline their work force and let go who they don't need. Those who can work from home might eventually do that more and more and be common. With restaurants and stores possibly closing than commercial buildings will have more and more empty buildings. This is a worst case scenario but it is possible. My two cents is that residential real estate will have its challenges but people will always need a roof over their head. Stocks will be sporadic at best. So what is the safest investment if done correctly that you can actually make money at be less exposed to market volatility? Residential real estate. Just my biased opinion though. And for those that don't know that IRA or 401k that is going up and down more than a yo-yo. Those can be converted to a self directed IRA and 401k and then you can invest with those funds and buy, hold or sell properties.
What I'm doing differently the last month or so with economic strains currently. Not much. I am trying to be a bit more cautious with expenses and trying to focus on cutting down my debts. I've been doing this what seems like forever. When I got into this business or rehabbing I listened to other people and took the easy way out to pay for rehabs. Put expenses on credit cards, get points/rewards, pay it off. Wash, rinse and repeat. Been there, done that. Not anymore. When life happens, you have emergencies or short on cash its easy to pull out the credit card. Mix in budget overages and house upgrades, and finance charges you get where I'm at. I have to sell a house once a year just to pay credit card debts. A second one to pay for lifes expenses. And then I do another one to use to invest or pay down debt. I'm smarter than this now but I'm still paying for my early mistakes. Lessons learned.