Veteran real estate investors have talked for years about being ready for the next downturn in the market. They have strategies laid out because of their takeaways from their first-hand experiences in a past downturn.
But what about those investors who haven’t been through a full market cycle? In a seller’s market, everyone had their parameters and they knew if they bought right, they’d be able to sell within a certain range fairly quickly. It became repetition. The acquisitions side of the business was seemingly more difficult than the dispositions side.
Now we have unknowns on the dispositions side of the business because you have buyers who may not feel secure enough to put roots down in this market. Even worse, lending has tightened up and it may be more difficult for your buyers to secure financing.
This change in the market has newer investors pausing their advertising and waiting to see what happens. The problem with this is that you’re letting your pipeline dry up, which is going to make it harder for you to start back up again.
Be smart with your advertising. If you have a support group like a mastermind, listen to other investors on what marketing is working for them and tweaks they’re making to their message.
If you don’t have the experience of going through the last downturn, listen to those who have been through it and do what they’re doing.
Don’t sit by the sidelines twiddling your thumbs.
If you’re scared, you need more knowledge about what to do. It’s okay not to know how to pivot, but you have to be adapting to the market or you’re going to fall behind and your competitors are going to grow larger while you dwindle down.
In this market, knowledge is power.
Do you have the right support system to help you thrive in this changing market?