Credit Crisis Archives - Page 5 of 5 - Real Estate Investor Magazines

How These Co-Investors Continue Delivering High Returns Through Yet Another Recession

April 22, 2020/in Credit Crisis, News /by dulce

By Tim Houghten, Staff Writer

While some are hiding out and putting their heads in the sand amidst current events, Adam Levine and Daniel Edrei are among the few who are not only thriving, but growing as the market cycles and creates new opportunities.

Real Estate In 2020

The US real estate market kicked off big at the beginning of 2020. New record deals were made and many wealthy individuals and corporations went on a buying spree.

Interest rates were low, capital was the most plentiful it had been since 2006, and the bulls were running wild.

While experienced investors had forecast a new recession coming for years and were already prepared, the majority had their blinders on. Most were not ready for how fast the coronavirus pandemic hit the US economy.

Among the immediate impacts were disruption in the building material supply chain, bans on renting vacation properties, and talks of moratoriums on foreclosures. Quarantine and stay at home orders brought conditions not seen since in 80 years, since World War II. Perhaps even since the Spanish Flu 100 years ago.

Fortunately, we, and the real estate world have never been better equipped to weather something like this. Consider some in the past had to hide out in closets and between the walls for years just to survive with their lives. Now quarantine looks like luxury homes, flat screen TVs, 5G internet, Netflix, Amazon Prime on demand, and more than enough time to make endless memes.

These Moments That Distinguish New Leaders & Create Massive Wealth

Via Zoom we caught up with Adam Levine, Managing Partner of Levine Capital Management, and Daniel Edrei, Managing Partner of TCS Anika Homes.

It didn’t matter that one of them was in Philadelphia, another in New Jersey and our reporter in Florida. Those who are excited about this moment are finding ways to leap on the opportunities and keep on doing business.

Zoom just happens to be one of the tools they are using to keep communicating with investors, acquire deals, and to keep operating and signing new leases. Even during a complete lockdown.

It may prove to be one of the shortest recessions in recent history, but however long it lasts, it is just another turn in the cycle for experienced real estate investors.

It is in these moments that legends like John D. Rockefeller, Warren Buffett and Sam Zell are made. It is when there can be great gains in family wealth that lasts for generations.

Tragedy, Transition, Triage & Creating An Upward Trajectory For Your Finances

There is no question that the coronavirus and its personal and economic impact come with a lot of tragedy.

It is also time to look forward. Those who don’t will be reeling from this moment for a decade or more, while others are enjoying their best lives ever.

Hopefully, like Adam and Daniel you were already transitioning your investment strategies, asset allocation and portfolios long before COVID-19 reared its ugly head. If not, it is high time to triage your money. What do you need to sell before it is too late to save? What can you save with some extra care and attention? What will thrive and have immunity? Where do you put your energy and resources?

Since 2012 Adam Levine has been involved in well over 1,000 transactions, and has focused his funds on capital preservation and high returns in recession resilient, risk adjusted investments.

Daniel Edrei has been investing in real estate for over 25 years. He’s been through the dot com bust, 2008 and now the coronavirus pandemic. He is no stranger to recessions and how to invest through them. After 2008 he took stock of his debt investments loans he made. He realized that his higher LTV loans actually out-performed others where they had invested in teams with the strongest sponsors and operators. So, he began engaging in ‘dequity’ deals where they would share in the equity. Then moved into equity investing.

Seeing the coming recession Daniel said he had already been transitioning his funds and assets from luxury to workforce housing, well before it hit. They already have around 3,000 units under management, and are now well positioned to become the next Blackstone. The large multi-billion dollar hedge fund famous for creating Invitation Homes and B2RFinance, and buying tens of thousands of single family rentals in 2008.

Investing For Success

As of our Zoom interview, Adam and Daniel said they are actively investing, deploying capital, securing new leases with tenants and making acquisitions.

They continue to look for portfolios of 1- to 100 plus units to buy, and encourage those holding them to request a competitive bid from their latest fund. Today, they are mostly focused on row homes and workforce housing in Philadelphia. Though they may expand to cover Washington DC, Camden, NJ, Baltimore, MD and other surrounding areas.

While other investment providers have continuously been reducing the value of their offerings and yields over the past few years, Daniel says they are actually expecting to be able to deliver even better returns ahead. They already promote targeted returns of 15% to 24% (IRR). Access to better deals and better prices in 2020 may boost that even further.

What Is Co-Investing?

Now on the third fund for TCS Anika Homes, Daniel’s firm is sponsoring access to high performing income property portfolios. His direct LPs are typically sophisticated investors committing at least $200,000.

Desiring to make these investment opportunities more accessible without compromising on service, Adam and Levine Capital have partnered to co-invest in this fund. By investing through Levine Capital, accredited individual investors can still participate, but with minimum investments of just $10,000 to $20,000. This enables them to test the waters before committing even more capital, after experiencing the results for themselves.

This is an exciting opportunity. Especially for all those who thought they missed out on 2008, and the chance to create great wealth. Few expected it to come so soon. Just don’t sleep on the chance to invest while the market is ripe.

The Keys To Navigating The Market In Times Like This

1. Be Prepared, Move Quickly

Ideally investors were prepared in advance. Most weren’t. There is still a chance to shift asset allocation and reposition for success. Just don’t waste any more time.

2. Proven Relationships

While there are many seemingly great opportunities out there, the truth is that new entrants to real estate investing can be at a severe disadvantage if they are going the DIY route. It is going to be super hard to test out new contractors and property managers and build a trusted brand in these times. Fortunately, TCS Anika Homes was well ahead of this with a vertically integrated and owned ecosystem incorporating all facets of the business from brokerage to management and construction.

3. Partner With Veterans Who Have Been Through It Before

Even Adam says that despite graduating with a business degree, and a Masters in property management, theory and book knowledge only goes so far. He made his own greatest leaps and was able to learn the most and invest safely by partnering with others who have been through the trenches of previous cycles. This is in a large part driving what he is offering others today. Instead of packaging and selling his knowledge in a guru-like course or training program, he walks investors through his deals and co-invests side by side with them.

Find out more about these funds, recession resilient investments, and their founders at LevineCapital.com and www.TCSAnikaHomes.com.

Breaking: Demystifing CARES Act and Other COVID-19 Resources for Investors

April 16, 2020/in Credit Crisis, Loans, News /by dulce

By Stephanie Mojica

The $2.2 trillion CARES Act is the largest economic relief program in the history of the United States and has two primary programs to offer — the Paycheck Protection Plan (PPP) and the Economic Injury Disaster Loan (EIDL).

These programs, offered through the Small Business Administration (SBA), provide unprecedented economic relief for entrepreneurs, according to Rony Marootian. He is the Marketing Operations Manager for the Los Angeles-based tax preparation and financial consulting firm Robert Hall & Associates.

PPP loans are based on the average monthly payroll expenses of a business, multiplied by 2.5 and capped at $10 million, according to Marootian. They are intended to cover expenses for a business during any eight-week period between February 15, 2020 and June 30, 2020. PPP funds can be used for payroll costs, rents, mortgage interest, and utilities. If a business owner maintains a certain level of payroll expenses and employee numbers during that eight-week period, the loan is 100% forgiven; as employee numbers fall below those levels, the forgivable amount is phased out.

While business owners can get both the PPP and the EIDL, both loans cannot be used for the same purpose, Marootian said in a recent email interview with Realty411.

According to the U.S. Chamber of Commerce, “if you are able to secure a PPP loan, the $10,000 grant will be subtracted from the forgiveness amount.”

EIDLs (also known as emergency advance grants) are to be distributed within three days of a business’ application; however, the PPP program does not have deadlines for lenders to disburse loans, Marootian said.

“However, the purpose of these new programs is to get funds to small businesses struggling to stay open and keep employees paid due to COVID-19, so the CARES Act has provisions to reduce burdens in the processes and increase efficiency,” he added.

SBA PPP loans are disbursed by SBA-approved lenders. Due to the circumstances of the COVID-19 crisis, the SBA has given the U.S. Department of the Treasury and the SBA the ability to grant temporary SBA-lender status to lenders that do not currently participate in the program; this will allow more loans to be approved and disbursed as quickly as possible. The SBA does not issue PPP loans, but instead guarantees them to the lender. However, the SBA directly administers EIDLs.

“Based on our experience, we’ve not seen the government provide such a rapid response to help small businesses,” Marootian said.

“The purpose of these new programs is to keep small businesses afloat and get funds to small businesses who are struggling to continue to pay employees, so it was imperative that they responded quickly.”

According to the CARES Act, a small business is any business that operates with 500 or fewer employees. In some industries, the size may be expanded by the SBA. Self-employed professionals, independent contractors, and sole proprietors also qualify, according to Marootian.

“The SBA does not currently have an industry size standard for employee numbers for real estate brokerages, property managers, appraisers, or other activities related to real estate,” Marootian said.

Sole proprietors and “gig economy” workers will have to provide documentation to prove eligibility, including payroll tax filings to the IRS, Forms 1099-MISC, and income and expenses from the sole proprietorship, according to Marootian.

Marootian emphasized the importance of not pursuing any financial programs or making any business-related expenditures without some level of professional guidance.

“With so much uncertainty, be sure to speak to your accountant and financial advisor to review your options before you spend any money during this time,” Marootian added.

To find more information about the PPP loan program, please visit: https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/paycheck-protection-program-ppp

To find more information about the EIDL, please visit: https://covid19relief.sba.gov

Robert Hall & Associates is currently offering complimentary consultations about taxes and other financial concerns. For more information, call 818-242-488 or email [email protected].

Breaking News: This Week’s Historic Stock Surge Calms Investors

March 27, 2020/in Credit Crisis, News /by dulce

By Stephanie Mojica

After weeks of bad news, there is plenty of good news for real estate investors and realtors alike. On Wednesday, March 25, U.S. President Donald J. Trump as well as Senate and Congressional leaders reached an agreement on a $2 trillion stimulus package to hopefully stave off any recession due to the myriad problems caused by COVID-19.

The day before, Dow had its best day since 1933, according to The Los Angeles Times. Dow’s index increased by 11.4%.

Standard & Poor leaped 9.4%, which was the third-best day for gains since the 1940s. Because Standard & Poor is particularly important for 401(k)s, which impact an estimated 50% of American workers, according to CNBC.

Nasdaq jumped 8.1% as well.

According to Forbes, the unprecedented stimulus package will do the following:

• send $1,200 checks to most Americans;
• increase unemployment insurance benefits;
• set up a $500 billion loan program for small businesses in trouble;
• provide $130 billion for hospitals;
• inject $150 billion into state and local stimulus funds;
• loan $50 billion to affected airlines; and
• create a $500 billion fund for industries, cities, and states.

Yesterday’s latest statement from President Trump indicates he set Easter as an optimistic date for businesses to resume to full operation. These positive signs from Wall Street and the executive branch are increasing investor confidence in both the stock and real estate markets.

OH WOW! From Hoard To Restored

March 25, 2020/in Credit Crisis, News /by dulce

By Holly Lynn

Go From Hoard To Restored With These Easy Tips

With spring upon us; along with tulips, allergies, and warmer weather, is the dreaded spring cleaning. It’s time to scrub, disinfect, and purge.

It’s an opportunity to prepare for the year ahead and lighten up the heaviness that too many Christmas gifts and accumulation of junk from the previous year.

With these simple tips, you can go from gatherer to minimalist in no time.

Make a plan of action.

As with any project, a good plan of action is a good idea. If you want to get organized you have to organize your thinking.

Go from room to room and write down what needs to be done overall. Then make subcategories for each room. For example the kitchen. Write down everything that has to be done. Then in the subcategories write down the freezer, pantry, cupboards, etc. Next to each item write if you are keeping, donating, trashing, or recycling/upcycling, or selling.

You can find many helpful lists on Pinterest or just Google it.

Donate to charitable thrift shops.

Donating to charity feels good! It’s a way to give your stuff away to a good cause. Only donate items that are in good condition, unsoiled, and mark-free. There are many places that will take your belongings. Some will even pick up your donations, depending on location.

The Salvation Army has been around for almost 155 years. Donations fund a myriad of programs aimed at assisting people. The non-profit organization sponsors rehabilitation, financial aid, disaster relief, elderly services, youth camps, etc. Check the website for pick up availability in your area.

Goodwill is a for-profit charitable organization that uses funds to assist with job placement and employment services. Pickup service is available in some areas.

Hospice provides quality, palliative care for terminally- ill persons who have less than six months to live. They focus on comfort care rather than life-saving measures. They also provide other services such as family support services, financial assistance, etc.

AMVETS thrift stores’ goal is to provide veterans with extending services such as V.A health, scholarships for education, youth services, entertainment abroad, etc.

There are many more thrift stores that are willing to accept your donations.

Make money

Another way to rid yourself of excess stuff is to bulk up your piggy bank by selling your items. There are the old-fashioned methods of yard sales and garage sales, but in this day and age, the internet has many websites or apps that can make selling easier.

Craigslist is a website devoted to forums, rentals, rants, and raves, etc. One of the most frequented sections is the For Sale category. You can post any item for sale and arrange for a meetup between yourself and the purchaser. Always be cautious when procuring this kind of acquisition.

Poshmark is an app where selling your clothing, shoes, accessories to buyers is easy. Poshmark focuses on preloved fashion that is usually name- brand. They provide a shipping label and you pop it in the mail. No meetings are necessary.

Etsy This app focuses on the unique, handmade, and vintage.

Mercari, also known as the selling app, is a hub for many categories. From fashion to footballs, and Louis Vuitton to Nike, Mercari is a great place to off your hoard and get moola.

Recycle and repurpose

In a throw-away society, recycling and repurposing are beneficial to the planet. You can toss your paper goods; such as calendars, old dusty books, and magazines, in the recycle dumpster.

Repurposing furniture to sell or redecorate is a creative way to save money or make money. The cost of new paint or varnish pales in comparison to having to purchase new furniture.

Always try to reuse and repurpose. However, if you spend too much of your time, or if it gets in the way of making progress in your cleaning expedition, then maybe you should let it go.

One way to get help is to get your friends on board. In exchange for helping offer and bribe them with your goodies. You can kill two birds with one stone. You know the old saying, “One man’s junk is another man’s treasure.”

Throw it away

When you cannot see a way to donate, sell, give away, or recycle/repurpose; then just toss it! Please don’t ponder on this too long. This is what got you in this mess in the first place. Marie Kondo, organizing expert asks, “Does this spark joy?” If the answer is no, then release it. Just throw it in the trash bin!

Organize it

In the event that you just can’t part with Johnny’s school artwork or the sweatshirt you had since college, then at least organize it. Put it in boxes, plastic storage containers, anything to tidy up the clutter.

You can find superb, organizational, containers on Amazon or Walmart. Just make sure you do not make another hoard with storage boxes.

Here are some final tidbits to help you:

Use over-the-door racks for everything
Store shoes in a bin under the bed
Roll up towels, undies, and t-shirts for easier storage
Color coordinate everything
Keep kitchen appliances in the cupboards for clutter-free countertops
Hang your pots and pans
Use tension rods to add space in your cabinets
For chemical-free cleaning use baking soda, vinegar, and water.
Make use of vertical spaces
Bring older food to the front in your cabinets and refrigerator

“Clutter is nothing more than postponed decisions.”
– Barbara Hemphill

“For every minute spent organizing is an hour earned.”
—Benjamin Franklin

We tend to hold onto belongings because they evoke memories, make us feel secure, or because of laziness. Whatever the reason that you find yourself surrounded by material possessions, free your soul by minimizing, organizing, and mitigating your load. When you do, you will move freely about your space. Not only physically but mentally. Clutter will bog you down. It makes you tired, interrupts your sleep, and gives you, what I like to refer to as scrambled brain syndrome.

When you finally come to the end of your clean-up, reward yourself with a hot bubble bath, candles, music, and champagne. Then toast to yourself and give yourself a Good Job and Well Done!

Holly Lynn is an Airbnb Manager and financial hard money lender. You can reach her at www.hollylynn.com or [email protected] for services.

What To Do When You Are On Lockdown

March 23, 2020/in Credit Crisis /by dulce

Nothing is a waste of time if you use the experience wisely
-Rodin

On Thursday Governor Gavin Newsom announced a shelter-in-place order for California residents. This proves to be difficult for many people who are used to being on the go and getting their hustle on every day.

While 16 critical sectors remain open, most businesses are closed. This leaves a large part of Californians sequestered at home. Of course, this is a necessary evil if we want to reduce the spread of the Covid-19 virus.

So the question is what can you do at home during this time of uncertainty? There is always so much to do. Here are some ideas for you to consider:

Learn more about your business

Whatever your business is there’s always something to learn. Take this time to study in-depth, the ins-and-outs of your business. If you are in real estate, for example, catch up on continuing education. Study your competition. Learn the different facets of your business that you may not have had time to learn previously. Research. Learn. Grow.

Spend time with your family

The stay-at-home order is pretty much forcing you to spend time with your family. But are you really spending time with them? In this day and age of cell phones and computers, people can put themselves in a bubble and be oblivious to what’s going on even in their own homes. Consider unplugging! Pull out board games. Make family meals together and enjoy them around the kitchen table. Make memories even if they’re in your living room. Pick a big bowl of popcorn and Netflix and chill. NO! Not that kind of Netflix and chill. The family PG version is what I’m talking about. Just talk to each other. Learn more about each other. Unite.

Get an education

I know most of you would rather watch paint dry then go back to school. But a cure for boredom could be expanding your horizons by learning something new. There are many online courses that are now offering free training. Here are just a few:

Coursera

According to Quora, Coursera is a free online learning tool for everyone who has an account registered. Account registration is also free of cost. All courses offered by Coursera are “accessible for free”. Each course includes short video lectures on different topics and assignments to be submitted, usually on a weekly basis.

Stanford Online

It’s Stanford University. It needs no introduction. There are classes that you can audit.

Edx

According to the definition on Wikipedia, edX is a massive open online course provider. It hosts online university-level courses in a wide range of disciplines to a worldwide student body, including some courses at no charge. It also conducts research into learning based on how people use its platform.

Learn a new hobby

Learning a new hobby will surely pass time. Have you ever wanted to learn to crochet? Or how about learning to play the piano? The internet is chock-full of how-to videos. So just type in YouTube in your search bar and find the hobby that suits you.

Get some exercise

The shelter-in-place order does mean you have to be completely closed off. You can still go for walks. Just make sure you stay six feet away from the next guy. Walk away from cabin fever!

Whatever you decide to do this during this coronavirus pandemic; make it count! Use this extra time wisely. Whether it’s reading a book, budgeting your checkbook, cuddling with loved ones, or just catching up on sleep; appreciate the break, look on the bright side and be thankful. Very thankful. Stay Safe!

Holly Lynn

Experienced Owner with a demonstrated history of working in the real estate industry. Skilled in Team Building, Television, Leadership, Marketing, and Digital Marketing. Strong business development professional who graduated from San Francisco State University, College of Business.

The Queen of Capital, Holly Lynn specializes in helping people with their real estate needs. She is a creative and results-driven resource who can help investors at every level.

Her authentic, personal relationships with both lenders and investors coupled with her vision, work ethic and endless desire to make the deal work position her as a sought-after, leader in the industry.

Holly Lynn can help you with hard money, private financing and other funding for your investments and projects.

She is a self-taught deal maker who has always had a keen business sense. She works with investors and syndication across the board who are looking for real estate investments that produce passive income streams.

She built B.A.M.F into the single most recognized name that is designed to build strong relationships and invest in multifamily projects to create massive cash flow and wealth. B.A.M.F monthly meetups in San Francisco, San Mateo, Fremont, San Jose and those conducted through webinars are open for everyone. As the multifamily properties continue to be an investment megatrend, She gives everyone an opportunity to learn about multifamily property investments and opportunities that would only be otherwise available for top dealers and those who met the qualifications by SEC. But through B.A.M.F, you can meet with experts and deal organizers who can provide you with great investment options.

Holly’s reputation has been earned one transaction at a time with no substitute for hard work and honesty. Take advantage of her deep proven experience in the real estate and investment market by joining her events and mixers. Mixers that are organized by B.A.M.F is sought after by reputable individuals in the investment and finance field. It is your chance to learn and grow.

“I have always believed that your money is waiting for you, but you have to keep yourself open to receiving it.”

– Holly Lynn –

The Great TP Crisis of 2020

March 19, 2020/in Credit Crisis, News /by dulce

By Holly Lynn

What are you going to do if you are cooped up in the house because everything from courthouses, social gatherings, and businesses are closed because of the Coronavirus? It’s looking that way now.

Everybody’s making jokes, including me, about the toilet paper crisis and shelves being wiped clean. People are sharing photos and videos of empty shelves across America. The videos showing grown women punching each other out over Charmin is ridiculous. If you are going to hoard something, let it be something that you can’t live without. Like food and water. Not that I am suggesting that. But TP?

What do you think is the reason that this is happening?

I’ll tell you what I think! It started with that first person who hoarded all the toilet paper.

Then that person told their friend that they were stocking up on toilet paper.

That friend got worried that the aforementioned friend would have more toilet paper than them.

So then that friend went to the store and loaded up on massive amounts of TP and other goodies. Someone else in the store noticed, then decided that they should stock up, too.

Do you see where I’m going with the story? Monkey see monkey do.

It makes sense to stock up on necessities in times of crisis. Remember the PG&e outages of last year? That should have taught us a lesson or two. Waiting till the last minute is detrimental to everybody. So let this be a lesson to you!

Back to my original question of what are you going to do if you’re cooped up in the house?

Me? I’m going to carry on as business as usual. I have important stuff to do and I’m going to do it! The world can close down around me, but I am going to keep on hustling. For myself, my family, and my clients.

I hope that this gives you the opportunity to spend time with your family, to prepare for the future, and to realize that life will always throw you curveballs. It’s how you deal with it that matters.

Holly Lynn

Experienced Owner with a demonstrated history of working in the real estate industry. Skilled in Team Building, Television, Leadership, Marketing, and Digital Marketing. Strong business development professional who graduated from San Francisco State University, College of Business.

The Queen of Capital, Holly Lynn specializes in helping people with their real estate needs. She is a creative and results-driven resource who can help investors at every level.

Her authentic, personal relationships with both lenders and investors coupled with her vision, work ethic and endless desire to make the deal work position her as a sought-after, leader in the industry.

Holly Lynn can help you with hard money, private financing and other funding for your investments and projects.

She is a self-taught deal maker who has always had a keen business sense. She works with investors and syndication across the board who are looking for real estate investments that produce passive income streams.

She built B.A.M.F into the single most recognized name that is designed to build strong relationships and invest in multifamily projects to create massive cash flow and wealth. B.A.M.F monthly meetups in San Francisco, San Mateo, Fremont, San Jose and those conducted through webinars are open for everyone. As the multifamily properties continue to be an investment megatrend, She gives everyone an opportunity to learn about multifamily property investments and opportunities that would only be otherwise available for top dealers and those who met the qualifications by SEC. But through B.A.M.F, you can meet with experts and deal organizers who can provide you with great investment options.

Holly’s reputation has been earned one transaction at a time with no substitute for hard work and honesty. Take advantage of her deep proven experience in the real estate and investment market by joining her events and mixers. Mixers that are organized by B.A.M.F is sought after by reputable individuals in the investment and finance field. It is your chance to learn and grow.

“I have always believed that your money is waiting for you, but you have to keep yourself open to receiving it.”

– Holly Lynn –

U.S. Market Plunges, Realty411 Experts: “Recession On the Way…”

March 17, 2020/in Credit Crisis /by dulce

by Stephanie Mojica

The Federal Reserve slashed its benchmark interest rate to nearly zero on Sunday, March 15, sending real estate investors and the world at large into even more panic over the very real financial threats of the coronavirus aka COVID-19.

This of course drew the overall question of, is the United States now in a recession?

The opinions of experts interviewed by Realty411 on Monday, March 16, varied. However, the opinions all held one common thread — the economy of the United States and the world at large is in danger.

Gena Lofton, a Los Angeles-based investor, speaker, and author, said that she believes a recession officially began this first quarter of 2020, even before the interest rates were slashed.

“It’s highly likely that we will have low to no economic growth for the next two quarters, which is the definition of a recession,” Lofton said.

However, she noted that there are two more important questions for concerned parties to ask:

· When will it end?

· Will it be a “depression” or a recession?

“The answers to the above questions are dependent upon the severity (i.e., the depth) [of this economic downturn]; the length (i.e., the number of quarters); and the of fatalities as a result of the coronavirus — all of which will result in financial disasters for a large part of society,” Lofton said.

“It is highly probable that this will spill into 2021, as the money supply and supply chains have been broken for too long. For example, when an economy is chocked for this long without air (money) it is nearly impossible for it NOT to have a recession.

“The example I like to use is it’s like holding your breath underwater, if one does that for too long, they will either die or be unable to function when they do get air.”

According to Lofton, it is important for all investors and other concerned parties to deeply understand four factors:

· the money supply;

· the credit/bond market;

· supply chains; and

· economics in general

Bruce Norris, president of the Riverside, Calif.-based Norris Group and an active investor, hard money lender, and real estate educator with over 35 years of experience, said a recession is on its way.

“I think it’s [the Federal Reserve’s decision is] a reaction to realizing there’s a U.S. recession coming for sure,” Norris said. “A global one is likely as well.”

In response to a question about how serious COVID-19 is to the global economy in general, Norris said: “It’s [COVID-19 is] the biggest Black Swan event of our lifetime.”

According to Norris, the current situation is worse than the stock market crashes of 1987 and 2008 — but it could be of a shorter duration.

However, “depending on how high unemployment goes, this could impact renters’ ability to make rent,” Norris added.

Lloyd Segal, director of LAREIC (Los Angeles Real Estate Investor Club) — the largest real estate investing group in Los Angeles — also said a recession is on its way. However, he urged people not to panic.

“The best way to protect your real estate portfolio is not to sell!” Segal said. “No panic selling. Hold off on any activity for the next six months until the market stabilizes.

Sam Sadat, founder of Sam’s Real Estate Club in Los Angeles, Calif., feels that the recession for the economy is a recession, but not specifically for real estate investors. “As long as rates stay this low, we will have buyers.”

While panic selling is to be avoided, Sadat says this economic hurdle is the perfect time to re-adjust your portfolio and sell off the not-so-good properties to focus on the long-term winners.

“Save your money and get as much access to capital as you can. Look for bargains and invest in long term small multi-units,” Sadat adds.

It’s important for Realty411 readers to be aware that fortunes can be lost or made during economic turmoil, such as recessions.

“I’m sharing with my members and students that whenever the market goes through sudden upheavals, prices inevitably tumble,” says Segal, adding: “It happened after 9/11 and after SARS, H1N1, and Ebola. But it takes months, not weeks. So, get ready — but be judicious. There will be incredible opportunities in the coming months!”

Sadat says that right now noise will be coming at us from all sides, especially political hype during an election year. With this in mind, he emphasizes a holistic approach: “Keep to the center, sharpen your skills, and observe with maximum awareness of the moment. This too shall pass, and we will be just fine.”

Check back for more updates on this developing story.