Make Better Decisions In Difficult Times
The amount of news we’ve been receiving lately is definitely be overwhelming. Although the situation is bad, try not to dwell too much on the negativity which can stop all of us from progressing. Learn how to achieve a proper mindset during this time, and follow along as we walk through an action plan to help us move forward successfully.
As real estate investors, there’s many things to be grateful about.
The fact that we own investments usually means we have enough cash to support our daily life so that we can invest what’s extra. Moreover, real estate investments provide us with multiple streams of income. In difficult situations like this, we can see that this can give us greater financial security in case one income stream fails.
We’re thankful that our investments are in residential real estate, which is defensive and fundamentally stable. Residential real estate is generally the last to drop and first to rebound during a crisis. Historically, the drop is significantly lower than the stock markets. Housing is a necessity, so it is heavily supported by the government such as financial aid for tenants and deferrals on expenses for landlords. Ultimately, Toronto real estate is fundamentally strong – there continues to be growing demand and limited supply.
You are not in this alone. We’re in a global pandemic and we will get through this together. While there are real fears and unknowns, changing environments can give way to some of the best opportunities. Take a look at our strategic plan that help us focus and take action when required, so that we can come out stronger at the end of a crisis.
The 3-Step Action Plan
Step 1: Get Informed
With so much information out there, it’s possible that we may be overloaded with information. The various unknowns can further fuel fears and cause confusion.
The reality is that there will be sellers in the real estate market that may sell for an undervalued price due to liquidity issues. This makes for great opportunities if we are looking to expand your real estate portfolio. On top of this, value-added upgrades can become even more attractive as we may be able to get better rates from contractors.
In order to get better focus, here’s what we recommend:
- Figure out the key facts that make a significant difference.
- Map out unknowns based on probable scenarios and expected outcomes. Things can change quickly so try not to spend too much time diving into the details. Mapping things out can help you make better plans and take quicker action when it’s time to do so.
Step 2: Get Ready
While we are waiting for the right time to come, get organized and prepared. If you are looking for real estate investment deals, it’s time to sort out your finances:
- Check that your existing cash flows are stable and that you have enough emergency funds in case something changes.
- Get mortgage pre-approvals lined up so that you can take advantage of opportunities in a timely manner.
Step 3: Act Quickly
We’re always ready to show you real estate investment opportunities. But as you know, great opportunities don’t last long. This means if you want to catch the best deals, you’ll need to act quicker than everyone else. In the end, making faster, more informed decisions will help you come out stronger.
How Can We Help?
We’re here to help you provide guidance and support to help you achieve your real estate goals. If you are looking for opportunities to grow your real estate portfolio, please let us know so we can keep you better informed and support you to get things ready.