Why Real Estate Investors Will THRIVE During Recessions
Real estate investors should not fear a bad market.
I’ve been through it before… You’ll survive, and possible come out stronger!
Hear me out:
In a recession, businesses will choose to reduce office and retail space.
This is a bad thing for landlords because it increases the level of competition for leases…
But at the same time, it leaves the remaining businesses with fewer options for space, thereby increasing your bargaining power as a landlord.
This means that your future businesses will be more selective in their leasing decisions, demanding better terms and more flexibility.
And who would say no to that?
In the real estate industry, there is no such thing as a neutral market. Every year is different,
but typically there are ups and downs for real estate agents and brokers.
Watch the video here
Be Proactive, Not Reactive
Successful real estate investor are proactive, not reactive.
You can’t be fruitful unless you hustle!
When you’re working in a down market, you have to take a proactive approach to your business.
This means that you have to be willing to make changes to your strategy, marketing, and approach to make up for any losses in revenue.
You also have to be willing to invest more time and energy in areas that don’t yield a return as quickly, such as networking and prospecting.
If you’re proactive, you’ll be able to weather any short-term loss.
More importantly, you’ll be able to use this period to make changes to your business that will serve you well during the next upswing in the housing market.
Enhance Your Brand and Network
One of the best ways to make up any losses in revenue during a down market is to enhance your brand.
This may sound like a difficult feat, especially if you’ve been building your brand for some time now.
However, it doesn’t have to be a drastic change that’s impossible to implement.
I decided to 3x my Youtube output!!
You can take any short-term losses as an opportunity to make changes to your branding and networking strategy.
This will help you to stand out from the crowd and make sure that potential clients and referral sources know who you are and what you do.
Don’t Be Afraid To Take Risk
Real estate investors are often afraid to take risks, especially if they’re in a down market.
They may be tempted to play it safe and avoid making any significant changes to their business that may lead to risk.
This may include making changes to your marketing strategy or even just their overall approach to business.
If everyone is playing it safe and not taking any risks, then it’s creating an environment where no one is making any significant gains!
Don’t Rush; Be Patient
No one can predict the future, especially in an industry like real estate that is so heavily impacted by outside factors.
It’s easy to become impatient when you’re experiencing short-term losses or feel like your business is lagging behind others.
However, it’s important not to rush your progress and make changes to your business before they’re actually needed.
If you’re not sure how to address a loss in revenue in your business, don’t rush to make changes just yet.
This will only end up hurting you more in the long run.
If you’re taking risks but they aren’t producing positive results, you should probably try something new.
However, make sure that you give your new approach time to actually produce results.
Don’t rush to make changes based on your impatience.
Instead, give your new approach enough time to actually produce results!
Find New Ways to Grow Your Business
If you’re experiencing short-term losses and want to come out stronger after the housing market picks up again, you have to find new ways to grow your business.
This is different from just making changes to your existing business. Instead, it means that you have to actively be seeking out new opportunities for growth.
You may have to seek out new clients, find new referral sources, or even create new services or products to work with in your business.
You may even have to find new ways to work with existing clients and referral sources.
Whatever approach you decide to take to find new ways to grow your business, make sure that it’s sustainable so you don’t have to worry about it when things pick back up again.
You don’t want to be scrambling to find new ways to grow your business again when the housing market picks back up.
Instead, you want to have a great foundation in place to support the growth you find now.
Real estate is cyclical, and it's impossible to predict when the next recession may arrive.
When it does, investors should use the opportunity to their advantage!
If you're lucky enough to catch the economy when it's in a downturn…
Then you'll probably find it easier to get tenants, have more flexibility in negotiating terms, and have more room for negotiation on rental rates.
When everyone else is struggling, you'll come out ahead!