Three or so years from now, as we look back, we will see what we could have, should have, and didn’t do. We can’t have retrospective vision until we have reached the future. Then it’s too late to change what has happened.
What we can do is look ahead at what could happen. And just to be sure we are all on the same page, we are talking about real estate and what the market might do.
We can take one of two views:
- Think, act, and project positivity in the market. This means planning and taking actions as though the recession will be short, the economy will bounce back and soar higher, and values of real estate and rents will not be of any concern.
- Look ahead – not with fear – but with projections of looking at the very worst that can happen. then act accordingly. The economy will continue to fall or, at best, limp along sluggishly for years or even decades. Home values will drop drastically. Foreclosures and evictions will dominate the housing markets. Abandoned properties will blight most neighborhoods across the U.S., Urban areas will decline as workers flee to low-density, low-cost parts of the U.S.
Both views are valid. At this juncture, either one could be the result three or more years from now. Oh, wouldn’t we like to have that magical crystal ball right now – or maybe that time machine that could zoom us ahead so we can look back to see what happened, then zoom us back to today. But, alas, there are no such things.
Although many effects come about by being positive in our thoughts and actions, the truth is, that , with all the process power that is at hand today, with all the historical data for that technology to work with, nothing that has recently happened in the financial circles nor the real estate circles has performed like anything in the past; so, the predictive power of our best technology is failing us. It is truly impossible to know what is going to happen from one day to the next.
The lack of predictive power causes markets to move erratically and illogically. Neither the markers nor we investors can trust any predictions, either positive or negative. It is a whole new world – not only in our personal lives, but in every aspect of our modern world, including the markets – that we have never seen before.
I’m out here in California as I write this. Most everyone is a positive thinker. (Quite a difference from most other areas.) However, the professional real estate investors like myself are not Pollyanna in our business thoughts. Basing decisions on wishful thinking is not a prudent method to use, especially in these very strange times.
Wouldn’t it be more sensible to glance at the worst that could happen, make plans and take actions as if the worst case may happen? If we prepare for the worst and we are right, we should be able to preserve the current wealth and wherewithal that we have. If we are prudent, we can multiply our investments exponentially. Prepare for the worst! The smart investor will plan for the second, pessimistic projection.
Another thing, one that comes before money, is people’s lives and how they live them. During times of difficulty, people lose their homes, families break up because of financial stress, and negative energy abounds. As Real Estate Investors, we have a duty to humankind to help as many people as possible as we move into their uncertain future.
One organization that I am very proud to be the founder of is Property Assistance Realty Trust (P.A.R.T). We do our part so others can do their part.
Especially in turbulent times that include decreasing real estate markets, we help people in many ways. We give free information and advice. We coordinate counselors, lawyers, mortgage specialists, real estate agents and especially Investors who can help with the stress of the times.
Recently, our busiest workflow has been helping homeowners who have been working here in the United States and are now moving back to their homeland because of loss of jobs and the inability to sell or rent their properties before leaving.
If you or someone you know is facing a real estate-related setback, we can help. Learn how at: https://propertyassistancerealtytrust.org/personaleconomiccrisis.
I’m here to help you to fulfil your dreams & goals,
So, I’ll See You Over the Top!
– Alan David Kosinski, Life Extraordinaire
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In each future article I’ll take you closer to more abundance through empowering and educational articles. Until then, see if you can discover ways to immediately implement what you learned from today’s message.
I support Alcohol & Drug Addiction Recovery Homes and the U. S. Military Veterans Organizations.