The last couple weeks have been rough for anyone watching their stock portfolio or the nightly news. The response and reaction to the Corona virus and oil markets are causing people to meltdown. Your neighbors, family, and co-workers may be freaking out after looking at their 401K, fearing the end of the world. But not you.
Markets will always see drops and rises, since no one can time them. Maybe this will lead us into an economic recession…but it also means potentially great opportunity.
Great investors know to keep a level head and how to take advantage of times like this. You’ve probably heard the saying “Be fearful when others are greedy & greedy when others are fearful.”
So as we all take a break from stocking up on hand sanitizer and toilet paper, Don’t Panic. No, the world is not coming to an end.
Through business cycles and fluctuations in the market, residential real estate has consistently proven to be one of the most resilient asset classes out there…people still need a roof over their head.
And multifamily apartments have long been a staple for individuals looking for stability, diversity, and a proven hard asset. Coming out of the 2008 recession, apartments have become a popular asset as they performed better than most other real estate.
There are obvious challenges on the horizon and who knows where this will go. We still need to be mindful to keep appropriate cash reserves, focus on conservative underwriting, and having properties located in markets with strong fundamentals. But it also means opportunities for anyone who educates themselves and those that keep a level head.
Just know that we at Think Multifamily have your back.
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