Want to thrive during this recession?
What do we need to absolutely consider? I share how thriving during this is possible.
And it might be a bit counterintuitive. I give you my exact tactics and guidelines and how I plan to do exceptionally well over the coming years.
Let’s be honest: no one has a crystal ball. We don’t know exactly what will happen or how long a recession could last.
So in this video, I talk about the safety nets and opportunities for you to look out for.
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What’s up guys, in today’s video, we’re gonna be talking about what you absolutely need to do in order to not just survive, but thrive and prosper during the recession. through Airbnb, we’re gonna talk about exactly what strategies I would recommend adopting in order to make sure that you survive through this tough economic times, and you’re buying the right deals, and ultimately really thriving through this time. So to start off with the most important thing that I think a lot of people overlook, is how important it is to have cash during a recession during a tough economic time, cash is going to be the lifeblood of your business. And ultimately, if you are operating short term rentals, you want to view that as a business, cash is going to be what allows you to sustain that business when things get tough. And so while a lot of people try to offload as much of their cash as possible to avoid having it erode to inflation, what you really need to realise is there is an optimal balance. And that optimal balance is not achieved at $0. In liquid cash. Yes, I do realise that by holding cash in liquid cash form, it does mean that you’re going to lose value to inflation. But it does also give you a really great safety net, so that if your income drops from your properties, or whatever, that you can still hold on to those properties. So personally, I like having six months worth of holding costs in the bank account at all times. And that’s as a bare minimum, I really like to have a lot more than that just in liquid cash. And the way I do it is I set up separate accounts for each one of my properties, and make sure that each property has enough enough money in cash sitting in that account to sustain itself for at least six months. So I know a lot of people think that’s pretty crazy. But what that allows me to do is it allows me to not stress and make the right long term decisions for myself. And for my portfolio, I never have to be thinking about next week or next month, I can always be thinking 612 months down the road, because I’ve given myself the freedom to be able to think long term. Whereas a lot of the time when people think more short term, they make the wrong decisions, and they end up getting into a tight spot. If you don’t have enough money sitting in your bank account in cash, to have to be able to sustain your property for long enough, you may need to liquidate other investments, when it’s not opportune to do so just so that you can hold on to your property. Or you may have to liquidate that investment of your property actually sell your property when the market isn’t favourable, when it’s not an opportune time to do so. And so to avoid any of those potential losses, the best thing you can do is insulate yourself with cash. Now, the other really great thing about having cash on hand is that you can snatch up really great deals when they come along. Again, I think a lot of people are so short sighted and so concerned with the with a loss of value of their cash to inflation, that they lose sight of what the end goal is, and they just try to offload this cash into any property because at least the property will hold its value. And although it’s true that a property will typically hold its value a lot better in an inflationary period, like we’re in right now than say, a big pile of cash, that property might not actually be a good investment. Otherwise, the goal with your investment shouldn’t just be to insulate yourself from inflation, it should also be to get a really great cash on cash return. So if you’re investing in short term rentals, you want to make sure that you buy right you buy a good property that’s going to hold its value. And that’s going to generate a really solid return in cash flow. So having that cash on the side, I realised can be stressful for some people, because again, you see the money leaving to inflation, you see it eroding away, but ultimately it gives you a lot more freedom, it gives you a lot more flexibility, it gives you options. And it gives you the leverage to be able to buy the right deal when it does come along. So that’s the other thing you really want to do aside from your cash is surely just stay patient. Think long term. All of us have been conditioned over the last number of years to think that anything other than massive returns on our real estate, and massive, positive movement of the economy essentially, is totally unacceptable. And you have to realise that tough economic times could last a couple of years. And we really need to be prepared to see it through for the long term. Because we all know as real estate investors that this is a long term game like the old saying goes unit instead of waiting to buy real estate, just buy real estate and wait. And waiting is that really tough part to do when you’re not making money short term, when things aren’t looking really good when the property is only cash flowing a little bit when you’re getting squeezed on your variable rate of your mortgage. Now suddenly the interest rates gone up. That is when it’s really challenging to stay patient anyone can stay patient and a year Like last year or the year before, where things were going absolutely crazy for a lot of us in a good way, when the properties were cash flowing 50% 60%, it’s really easy to stay patient think long term, when that’s what’s happening. But when inflation is going is going rampant, when interest rates are going up, the when bookings are coming down, that’s when it really is challenging, and the people that can stay patient that can think long term and see it through to the end, those are the people that are going to win really big. Ultimately, this is going to keep people in the game that ultimately makes a lot of sense, you’re going to be able to sell the property, once the value bounces back up, you’re gonna be able to hold on to it and generate really great cash flow, you’re gonna be in a really good spot, but also the people that are thinking short term and are panicking. They’re the ones selling not the ones buying. If you can keep yourself in a long term mentality, you’re gonna realise that right now is a really great buying opportunity. The old saying another one by Warren Buffett is you really want to be fearful when others are greedy and be greedy when others are fearful. The whole game here is we want to buy low and sell high. We don’t want to be buying high and selling low. But so many people get so caught up in the frenetic nature of a bull market that they think that that is the opportune time to buy. And no, it might not be a bad time to buy if you find the right deal. It certainly isn’t typically the best time to buy, the best time to buy is when everyone else is fearful is when we’re in a market like we’re in right now, when prices are deflated. So again, you need to be able to think long term and have a patient long term time horizon on your investing in order to see that as an opportunity because other people who are thinking short term are just seeing it as blood in the water. And they’re not thinking about the ultimate goal of making money over 510 years. And thinking about how great of an opportunity is to buy property right now in order to do that. They’re just thinking about how stressful it would be to be dealing with increasing mortgage rates, and everything else going on in the market right now. Guys just want to take a quick break to say that for those of you watching who want to build cashflow, and long term wealth by purchasing Airbnb and short term rental properties, there’s a link in the description down below for a FREE TRAINING they’ll walk you through my exact strategy for investing successfully in Airbnb is the training walks through the three most important things that you need to know if you want to successfully buy your first or next short term rental property. And again, the link is in the description down below for you to sign up completely free. When you sign up for the training, we’re also going to send you our ROI analysis tool completely free so that you can analyse properties the right way and find properties that will generate amazing returns. Again, the link to sign up is in the description down below. And both the training and the ROI analysis tool are completely free. So if you can do that, have some cash on the sidelines so that you have the ability to think long term and then you actually stay disciplined about thinking long term being patient, you’re going to come out ahead in short term rentals over the long term. So hopefully this helped you again, if you have any questions that you want to ask about this video, if you have any thoughts, you want to share anything at all, just pop them into the comment section down below. If you liked this video, if you got value from it, if you’re gonna keep thinking long term and stay patient then make sure you hit that like button helps me out tremendously with YouTube’s algorithm and helping me grow this channel Get these videos in front of more people. So if you take a half a second to do that, I’d really appreciate it. And last but not least while you’re here, make sure you hit the subscribe button. I post two new videos every single week on this channel, teaching you all about how to survive and how to thrive how to prosper with Airbnb and short term rentals. So if you want to stay up to date with that, make sure you hit this subscribe button so you can stay up to date with the tuna videos we post right when we post them. All that said thanks for checking out this video and I’ll see you in the next one