by Paul White

3. Run all your numbers. Once you have identified your worst-case scenario and your options for dealing with it, run the numbers on those options. It can be tempting to perform a move I call “ostrich investing” in order to avoid doing this. Ostrich investing involves throwing up your hands, sticking your head in the sand, and hoping for the best. This is a great way to guarantee that you are both likely to experience your worst-case scenario and develop severe insomnia. Run all the numbers. You will find that you immediately discover:

eal estate investors are probably the best-positioned population in the country to thrive in any “new nor-


mal” because most of the typical “investor goals” have not really changed. Why did you start investing in real estate? You might say because of any or all of these reasons: • Generate/replace income • Save for retirement • Have more time and flexibility • Achieve financial freedom Those motivations remain relevant today because if you do not already work for yourself in a recession-resistant, essential business, you could find yourself falling on hard times if you do not have some alternative means of making a living. Fortunately, housing is both a federally recognized essential service (although the fine print does vary by state) and a basic human need. It remains a good time to be a real estate investor if you can be flexible and creative in the face of uncertainty. The following steps will help you optimize your existing real estate portfolio for top performance throughout the next 12 to 18 months and beyond: 1. Accept the worst-case scenario. Every real estate investor knows it is important to identify and prepare for the worst-case scenario. Over the past decade, however, few have done so. The country’s economic growth has provided cushion. Now, you must identify the absolute worst-case scenario and accept that it could happen. 2. Look at all your options. Take a minute to map out every way you might respond or research your options and figure out, realistically, what you could do if worse comes to worst.

a. b. c.

Things may not be as bad as you think You have more options than you realized You could be generating better returns on your existing investments

Not only will you be prepared for anything by the time you are done, but you will be in a position to start optimizing your real estate investment portfolio. •

Dr. Paul White, former orthodontist and best-selling author turned real estate investor, partnered with his son Trey to create RealNumberz, the only comprehensive app in the real estate industry for investors with diverse portfolios of assets. The mission of RealNumberz is to revolutionize the passive real estate investor experience, empower individual investors to control their investments rather than letting their investments control them, and give any real estate investor the tools they need to achieve their freedomwith less time, effort, and anxiety. Learn more at or receive a free demo by emailing Paul at apartments, offices, mixed-use buildings, land, lots, mobile homes, cabins, and churches. Reach him at or (408) 489-0131.

86 | think realty magazine :: july 2020

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