Corona Virus - a chance to see what you're made of

Corona Virus - a chance to see what you're made of

JD MartinBusiness Member
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Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 17k+ votes

It is not often in life that you truly get the chance to see what you're made of - as an investor, a consumer, a citizen, a human being. For whatever reason, it generally takes monumental events - often catastrophes - to get a true sense of who we are. The Corona virus - COVID-19 - is going to give all of us that chance. 

Investors - is your investing plan really well-reasoned and thought out? Do you really have the reserves necessary to run any kind of enterprise? Are you willing to step into the ring and risk real loss? Are you willing to do the hard work when necessary? 

Consumers - are we going to stop buying everything out of fear? Are we going to hoard supplies that others might truly need so that we don't suffer? Are we going to support our local businesses to the best of our ability despite the teetering economic news?

Citizens - are we going to listen to authorities and stay home despite the inconvenience? Are we going to be diligent about washing our hands and sanitizing as best as possible even if the risk to us personally is remote? Are we going to accept that life is going to be a little bit different for us for the time being as we work through this?

Human beings - are we going to have compassion for others? Are we going to accept inconvenience for ourselves so that those who might be vulnerable aren't needlessly exposed to danger? Are we going to be decent to our tenants who might be truly suffering job loss and economic shock, and who are scared? Are we going to check on our parents, our siblings, our neighbors? 

It's easy to be an investor in high times when money is flush. It's easy to be a "nice guy" when everyone is flush with money. It's easy to be a landlord when all your tenants have jobs. When you really separate the "men from the boys" (this is meant to be gender-neutral) is when TSHTF. When your good tenant was told by Hilton to stay home until they need you. When you are on your last roll of toilet paper. When you have a mortgage payment coming up and are short the rent. 

These are the times you're going to remember years from now. I was in the military, and one of the reasons military guys tend to be tight is because they go through really difficult times together. I was listening to the BP podcast today and @Brandon Turner said something that I think everyone should absorb twice - he said "I don't worry too much about it because I'm willing to crawl through mud to fix a plumbing pipe or dig ditches." If you have faith in your ability to do whatever it takes to keep things moving, the Corona Virus will be nothing more for the vast majority of people than an interesting time in your life years from now. 

Personally, I try to be thankful for everything. I'm not thankful that many people will get sick and die - that's ridiculous - but I am thankful that these times give me the opportunity to examine who I am as a man. How I take care of my family. How I treat my tenants. How I treat my employees. How I work for the good of the community. 

You don't get many chances in life to see what you are made of. Anyone who's alive today has been handed a golden opportunity to test that theory. 

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Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
6y

Nice Post.

I know we have been trying real hard to raise the funds for our aheroshome.org  so we can give away the house to the Hero its been much tougher to raise charity money than i had thought. I was very naive in thinking that the real estate community would flood us with donations.  WE are almost there and we deeply appreciate those who have donated.

This situation is just so far removed from what most if not all people have ever experienced.. its hard to know the answers.

I mean we are sheltering in place .. And we have no rentals to speak we have some but they are paid for so we are not in the same situation as those who have taken on a lot of debt to buy these assets.. So what i can do for my few tenants would be vastly different than others who have very real concerns about their cash flow..

Our business is still running we are still funding deals we are getting payoffs and our underground contractors are just about done with the first phase of our Portland Oregon project..  And my wife put a fixer we own on the market today and got 10 calls in the first hour we are taking highest and best on Wednesday.. So there is still demand .

there will be a lot of babies born in 9 months.

And I believe unlike 30 days ago when many landlords simply had no clue as to the magnitude of the situation or could really define their risk profiles..  reality has set in and you will see these folks rally to save their good tenants and their investments.  

I will venture out for the first time in a week  wearing gloves  . in the meantime I walk the dog ( we have really cool walking trials in Summerlin) we can keep our social distance no problem and i have never washed my hands so many times.

I had to cancel 4 flights the last 6 weeks.. And hope to reposition back to Oregon in April if they dont close the borders..

At the end of the day I am a firm believer that people will do whats right..  And those wishing for a crash well they might want to tone that rhetoric down wishing for others to fail  not sure about that..  people fail at real estate everyday and in all markets deals are always there you partake if you can but wishing for it.. not so sure about that.



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  • Real Estate Agent · Kansas City · Member since 2018 · 5k+ posts · 3k+ votes
    6y

    Amen! When the situation and repercussions first showed up I was frustrated and not happy. After going through it a few days realized this is the perfect opportunity. Gives me the ability to find tune my business. Gives me a chance to step back and evaluate myself. Gives me a chance to refine my goals for this. Improve systems and small tasks that before I was too busy for. Blessed to be able to experience this time, a unique time to be alive. Stay safe everyone!

  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    6y

    Nice Post.

    I know we have been trying real hard to raise the funds for our aheroshome.org  so we can give away the house to the Hero its been much tougher to raise charity money than i had thought. I was very naive in thinking that the real estate community would flood us with donations.  WE are almost there and we deeply appreciate those who have donated.

    This situation is just so far removed from what most if not all people have ever experienced.. its hard to know the answers.

    I mean we are sheltering in place .. And we have no rentals to speak we have some but they are paid for so we are not in the same situation as those who have taken on a lot of debt to buy these assets.. So what i can do for my few tenants would be vastly different than others who have very real concerns about their cash flow..

    Our business is still running we are still funding deals we are getting payoffs and our underground contractors are just about done with the first phase of our Portland Oregon project..  And my wife put a fixer we own on the market today and got 10 calls in the first hour we are taking highest and best on Wednesday.. So there is still demand .

    there will be a lot of babies born in 9 months.

    And I believe unlike 30 days ago when many landlords simply had no clue as to the magnitude of the situation or could really define their risk profiles..  reality has set in and you will see these folks rally to save their good tenants and their investments.  

    I will venture out for the first time in a week  wearing gloves  . in the meantime I walk the dog ( we have really cool walking trials in Summerlin) we can keep our social distance no problem and i have never washed my hands so many times.

    I had to cancel 4 flights the last 6 weeks.. And hope to reposition back to Oregon in April if they dont close the borders..

    At the end of the day I am a firm believer that people will do whats right..  And those wishing for a crash well they might want to tone that rhetoric down wishing for others to fail  not sure about that..  people fail at real estate everyday and in all markets deals are always there you partake if you can but wishing for it.. not so sure about that.



  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    6y
    JD,

    On my Copa site  ( Cirrus Owners and Pilots) we have many Docs on that site from all over the world and some pretty renowned ones.. Some of what they talk about is very scarry.. but one point one of them made and they are for the most part older docs.

    But here goes.":

    WE have been through this before..  In 1952 Polio out breaks.. it was the same thing as we are facing now.. It came in the summer pools were closed gatherings were closed it affected the young.. 60,000 people got it in 52 and 3k died and many were left in pretty tough shape..  US rallied and Linus Pauling in Palo Alto created a vaccine.. So we have been there and we will get through this.
  • Rental Property Investor · South shore, MA · Member since 2017 · 1k+ posts · 1k+ votes
    6y

    Thanks for the post, JD. I cant help but think about all the times I heard people on these forums welcoming a recession, and how it made me cringe. Especially now with everything that's going on. I wonder how they will react when there own business suffers. Because it seems to me like no one is exempt from feeling the effects from this pandemic. The unthinkable is happening. 

    Im not soft by any means, but I have compassion for others. I will personally crawl through mud and pick up sh*t if I have to. Im already doing that. But, im hoping its enough to get me through. 

    I have personally faced a good amount of adversity in my life, and I survived those troubling times. No matter what, times like these are lessons and opportunity for growth. In all areas of life. I took the risk of owning rental property without adequate reserves, knowing the possible consequences. Sure, I have credit cards, and a retirement account (which is dwindling). But nothing beats motivation and discipline, which I wont lose. 

  • JD MartinBusiness Member
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    OP
    Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 17k+ votes
    6y
    Originally posted by @Brian Ellis:

    Thanks for the post, JD. I cant help but think about all the times I heard people on these forums welcoming a recession, and how it made me cringe. Especially now with everything that's going on. I wonder how they will react when there own business suffers. Because it seems to me like no one is exempt from feeling the effects from this pandemic. The unthinkable is happening. 

    Im not soft by any means, but I have compassion for others. I will personally crawl through mud and pick up sh*t if I have to. Im already doing that. But, im hoping its enough to get me through. 

    I have personally faced a good amount of adversity in my life, and I survived those troubling times. No matter what, times like these are lessons and opportunity for growth. In all areas of life. I took the risk of owning rental property without adequate reserves, knowing the possible consequences. Sure, I have credit cards, and a retirement account (which is dwindling). But nothing beats motivation and discipline, which I wont lose. 

    Brian, I have 0 doubt you will make it through the other side just fine :) One thing I'm reasonably good at is recognizing people who have potential; most of my hires over the years have been fantastic. You have what it takes to deal with adversity. 

    Skyline Properties
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  • Real Estate Investor · Tempe, AZ · Member since 2012 · 874 posts · 648 votes
    6y

    @Jay Hinrichs good share about polio.  A friend had shared with me a photo of his dad and uncle as young boys, crouching on their property line, talking to the boy next door from a safe distance, because it was "Polio Summer" and no one was allowed to actually play with each other.  He had also mentioned the pools being closed.

  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    6y
    Originally posted by @Dan Schwartz:

    @Jay Hinrichs good share about polio.  A friend had shared with me a photo of his dad and uncle as young boys, crouching on their property line, talking to the boy next door from a safe distance, because it was "Polio Summer" and no one was allowed to actually play with each other.  He had also mentioned the pools being closed.

    Yup those were scary times no doubt. 

  • Guy with Great Hair · Austin, TX · Member since 2013 · 2k+ posts · 4k+ votes
    6y

    I'm so mad about this. I got into real estate investing because it was PASSIVE...and because I'm LAZY, now we are supposed to see what I'm made of? so annoying! 


    I'm thankful for my partners right now, for exactly the reason you just said. We are both prior military and the comrade helps during times of stress. We are all still working on our projects, buying new deals, and keeping up momentum. There is definitely a path for people to feel as if the world is falling and getting excited about the next deal is difficult, but I'm 99% certain the world doesn't end from this and once the dust settles people will be scrambling for opportunity. 

    Those who are lax now will miss the turn. Stay vigilant 

  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    6y

    thank you Mods for removing the offending posts if anyone read them.. the insinuation of totally false those gentlemen made significant donations to aheroshome.org

  • Real Estate Agent · Murfreesboro, TN · Member since 2019 · 194 posts · 181 votes
    6y

    @Jay Hinrichs

    These times arent just where you find out who you are, these are where we are forged.

    I have only a few rentals and didn't start until last September. Everything is smooth right now, and of the 4 rentals 3 have a mortgage. We will see how long things syay smooth. We have some reserves and my main business is still producing at the moment and theres a large credit line to help if needed on the paid off rental. My own mortgage is negligible at 400$ a month. We have fantastic tenants and we want to keep them and should help be necessary would make the accomodations as long as possible.

    I understand the sentiment of being willing to do what is necessary, when friends asked what I'd do if we failed, I said live in one of my tents and start again. We're no strangers to being at the bottom and that seems to make hard people... hopefully none of this is necessary.

    I also understand the sentiment of a recession being good under normal circumstances. In one of the businesses I own (pressure washing) everyone thinks they have a truck and a washer and they are in business... during the good times. These less ideal times test their theory, and in some cases allow folks like me to purchase cheap equipment from those without reserves. The investing business is mostly the same. It's so easy to pretend you got it figured out when money is cheap and everywhere. So I like recessions to flesh that out and help those that fail realize, should there be a next time, do it with more care and thought.

    At the same time, I dig watching people become successful. One of the great joys of life is seeing someone who had nothing work their *** off and build an empire...however modest an empire it might be.

    In conclusion I dont know what to think, and many thoughts and plans are changing daily on the fly. I dont wish for anyone to fail. And those who'll look the dragon in the eye will come out the other side.

  • Austin, TX · Member since 2019 · 5k+ posts · 5k+ votes
    6y

    Well not everyone has to starve from food shortages.

    I'd bet those with the Guns and the Dogs just drive to the edge of town for a hearty pioneer type meal.

    Or hit the waters for a delicious fish dinner.

  • Real Estate Agent · Murfreesboro, TN · Member since 2019 · 194 posts · 181 votes
    6y
    Right there with you man!

    Originally posted by @Scott Mac:

    Well not everyone has to starve from food shortages.

    I'd bet those with the Guns and the Dogs just drive to the edge of town for a hearty pioneer type meal.

    Or hit the waters for a delicious fish dinner.

  • Real Estate Agent · Pittsburgh, PA · Member since 2015 · 1k+ posts · 846 votes
    6y

    @JD Martin

    Investing: Did some analysis and I think we should be OK, but agree this is a good time to test that. I feel a lot better since I have a local portfolio. I can always lease apartments myself, do basic handyman work, and whatever is needed to save money if necessary. However, with the amount of units we have I don't know how long I can do that and not pull my hair out. My biggest worry right now was our private lenders wanting their money out at one time rather than cash reserves for operating expenses over the next 3-6 months. To prevent that being an issue we lined up some of our bigger private lenders to buy the debt from the smaller ones if needed. We return consistently so most of them should be happy with that return considering the alternatives. However, if they need the cash for themselves we are ready to pay them out through one of our other private lenders. 

    Consumer: I'd say I'm stocking up prudently. My family is making sure we have enough food/supplies to last a month without trips out of the house, but I'm not one of the people buying 9,999,999 rolls of TP. 


    Citizens/Human Beings (as it pertains to tenants specifically): I have a lot of compassion for people that are making an honest effort to keep their ship afloat. People who are applying for unemployment, trying to find alternative employment to keep paying the bills, and basically doing the right thing. However, I have little compassion for those that are using this as an excuse and aren't making any effort to pay. Although that's a small number of people, I have at least a couple tenants that I'm 90% sure that's their plan. I have no problem being a nice guy to people who are trying to help themselves get through this. If someone is just sitting on their hands though, I don't have nearly as much. 

  • Investor · Sacramento, CA · Member since 2019 · 1 post · 0 votes
    6y
    David David oh David.. you have it backwards. Your attitude should not be based on your reality. Your reality is based on your attitude.

    Not sure if you like to read but I highly recommend you read “A Man’s Search for Meaning” where a man, who watched his family and friends get slaughtered during the Holocaust, was able to keep a positive attitude REGARDLESS of him being stuck in a concentration camp. If he would’ve taken your advice and allowed his reality to control his attitude, he’d probably have been miserable.

    Perspective is everything but keep that attitude and see how far it gets you
    .

    Originally posted by @Account Closed:

    If we do go into the forecasted recession, the only main positive is this will be a great opportunity for buyers down the road. 

    The rest is just pissing on your leg and calling it rain. 

    Your attitude should be based on reality, as closely as you can manage. If you jump off a building, all the optimism or pessimism in the world won't change the reality of gravity. 

  • Investor · Youngstown, OH · Member since 2017 · 2k+ posts · 2k+ votes
    6y
    Originally posted by @Brian Ellis:

    Thanks for the post, JD. I cant help but think about all the times I heard people on these forums welcoming a recession, and how it made me cringe. 

    SAME!

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