Luis Leiva, the CEO and broker of record with Culture Estate in New Jersey, lived with and through the Housing Crash in 2008. In his latest piece for InmanNews, Leiva shared how he came out on top and how he continues to thrive in ANY market.
Leiva reminds us all the three longest periods of market expansion include…
- 2/61 – 12/69 – 108 months during Vietnam
- 3/91 – 3/01 – 120 months during the Tech Bubble
- 6/09 – 6/19 – 120 months during this Current Market
As much as some of us may not want to hear it, Leiva also reminds us that we are statistically due for a market correction.
Leiva’s roadmap for surviving and thriving in ANY market includes the following:
Leiva believes the first step in preparing for a changing market is acceptance. Just as Tim and Julie Harris have been saying on their Real Estate Radio podcasts for the last 12-18 months and in their coaching sessions, ACCEPT that the rules of real estate are changing. AND, your business strategy MUST CHANGE in order to operate in a changing market.
Leiva suggests having 15% – 25% of your assets in cash. Cash is king when others contract. Cash is king in order to be able to take advantage of opportunities. Cash is king when experimenting with new marketing strategies, when expanding your territory and when making necessary hires.
How to have/get that cash? Avoid luxury purchases in order to be in low liability and high liquid asset positions. Take equity now if you have equity in investment properties by cashing out on them. Use that equity to pay off bad debt to raise your credit scores. You’ll want/need great credit scores if/when the bank begins lending again so you can take advantage of great opportunities when they surface.
Buyers and sellers look for someone who is confident AND educated. STUDY market trends and human psychology so you can impress those buyers and sellers when opportunities arise. Focus your energy and efforts on consumers who have been priced out of the market in the past.
Leiva believes that distressed properties are an investor’s dream. Develop a database of seasoned investors able to capitalize on distressed assets. If you don’t have access to those seasoned investors, partner with someone who does…offer that partner expertise, energy, time, whatever she/he doesn’t have so you will be worth such a partnership.
Remember, Leiva says. Fear is the biggest motivator and fear is not the fear of being rejected. Fear is not being able to pay your own mortgage.
Remember that 1% of the population controls 99% of the wealth. Therefore, do NOT follow the pack. Think outside the box and create your own market. Leiva believes that “…the market only exists in your mind and that you have the ability to see gushing springs when others see a dry well.”
Develop a positive mindset rather than falling prey to negative, fearful, contracted thinking and energy. Surround yourself with like-minded people who have a similar positive, stay cool mindset. Build a mindset and support system that refuels both your efforts and theirs.
Rather than fearing a changing, challenging market, Leiva encourages all to embrace those changes and challenges.
Much if not all of Leiva’s roadmap to coming out on top regardless of the market sound familiar? Just listen again to Tim and Julie’s podcasts and/or schedule a coaching appointment.