A recession brings mixed emotions to investors of all kinds. Whether you’re biting your nails in wait for the next stock market dip or chomping at the bit to seize on exclusive recession-era investment opportunities, it’s critical that we are all diligent and intentional with our investing strategies.
For real estate investors in particular, we can get caught up in the doom-saying as much as we can fall for too-good-to-be-true promises of investing success.
What we have to remember is that the real estate market moves in cycles. A recession is no cause for panic, as it’s a natural part of the market. Success in more challenging market conditions is not impossible, just as success in “easier” market conditions is not guaranteed.
What is valuable for us, as real estate investors, is that we aren’t “fair-weather” investors. We don’t only look to grow financially when opportunities are plentiful. Instead, we have learned to persevere and overcome despite the challenges before us.
There are a few key points to remember as we look for investment success in the middle of an economic recession.
3 Keys to Recession-Era Investment Success
Don’t get tempted.
While a recession poses challenges for investors of all kinds, it can also provide some uniquely attractive opportunities. We may, in time, see more foreclosures and low property price-points in the same way that stocks present some tempting numbers for would-be buyers. While there are genuine opportunities to be found, we have to be careful of adopting the urgent “sale” mentality that can easily lead to financial missteps.
Any time a financial decision is made based on emotion, you can guarantee it comes with heightened risk. You might feel the thrill of a great deal or the fear of missing out. Both can influence your decision-making.
As real estate investors, beware of bargain hunting and speculative investing. Every season of the real estate cycle comes with challenges. It’s critical that investors keep their portfolio sustainable, first and foremost.
While the greatest temptation faces young and inexperienced investors, even seasoned pros can fall victim to speculation and bargain-hunting. Focus on the quality and long-term potential of an investment, first and foremost!
Stay in-the-know.
As we navigate uncharted economical waters, investors would do well to find a balance between being informed and being overloaded with information. Ultimately, we can’t bury our heads in the sand. At REI Nation, we have been diligent in our efforts to keep our investors and team abreast of any new developments and statistics as we navigate the COVID-19 crisis.
This is an example of good information. Know where your partners stand. Read up on statistics and shifting demographics in your investment markets. Avoid reading too many predictions, op-eds, and speculative posts. While these can be valuable for perspective, they can create undue worry or an unfounded sense of security! Look for the facts. Know what you’re dealing with. From there, you can craft a strategic response.
Rely on the experts.
To steer clear of investment mistakes in the middle of these trying times, lean on the experts. As investors with REI Nation, you have unmatched access to a personal advisor who not only helps you make the best investment decisions for your unique needs and goals, but you are able to leverage over 15 years of investment experience in management, customer service, property acquisition, renovations, and finance!
We made it through the Great Recession. We’ve seen the ups and downs. And we have faith in the good things to come. Instead of relying on speculation, trust the known, proven strategies and services at REI Nation.
Be sure to check out: 4 Secrets to Curating a Recession-Proof Investment Portfolio
Beyond your turnkey partner, there are other ways to glean wisdom from the experts. While your personal partner is paramount, you can also find wisdom in the experiences and advice of other seasoned real estate investors. The key is this: don’t go it alone. Learn from the experiences and mistakes that others have made. Look to the seasoned experts, those who have seen every twist and turn of the market, and come out on top.
When you do this — when you focus on the proven strategies, learning from mistakes, and a growing, stable investment future — you will find that the challenges and pitfalls of a recession are not so daunting. Stay the course. Rely on the known.
And ultimately, as always, be a diligent and intentional real estate investor.
Invest in a proven turnkey investment model. Your REI Nation advisor is waiting for your call!
