ENGAGEMENT
PREPARATION
AReal Estate Survival Game Plan SURVIVING THE UNKNOWN TO THRIVE AFTERWARD
By Michael Zuber
W
hen I think about the environ- ment we are in today, I feel
them know we are here to help if needed. Based on rental applications, 10 percent of our tenants are most at risk given jobs in retail or restau- rants, so we highlighted them and will be extra proactive if required. We have delayed all capital improvements; adopted a fix-not- replace mindset; and we look to conserve cash everywhere we can in our hold portfolio. We have increased our investment capital from apartment sales we made in late 2019 as the value-add apartment market was overpriced, and we sold. Lastly, we believe this event will be short-lived and are prepared to operate at negative cashflow for six months, if needed, as we want to do right by everyone we can. THRIVE: We have started to reach out to real estate agents to let them know we are still here; we are still buying; and we are ready to buy if the num- bers work. We are watching the market as it is changing every day; it is critical that
you watch the market evolve over the next 90-180 days to see where opportunities present themselves. Understand that forbearance will not be the cure-all that many think it is; the ability to buy on terms versus cash will be helpful. We are preparing to buy more single-family homes in the next 18 months than we have the last five years. We are sharing our plan with other investors as we prepare to find lots of properties to hold and to flip. Do the basics; do not rush, and don’t be early as you don’t want to rush in for a 10 percent discount when a market could fall 50 percent. No one can tell you exactly what to do, but you can feel good about that. You can decide to find solace in the fact that we are all in this shaky ship together. •
better knowing that we are all going through something together that none of us have been through before. This means I am not missing a past lesson learned and that no one has the cheat sheet to artificially see bet - ter returns. In these unprecedented times it means, I can take my best shot and feel good about how it all turns out. I have adopted a “Survive and Thrive” mindset. I want to survive until August 1, 2020 and then look to thrive 18 months afterward in the hope that we should be through the worst of the crisis, and opportunities will start to appear by then. I see lots of opportunity on the other side of this pandemic, but I know I must survive now so I can thrive later. I am a buy and hold housing provider who also creates pride of ownership rentals for other landlords. Here is my company’s game plan of survival to prepare for prosperity later:
Michael Zuber worked in the Silicon Valley since graduating from Santa Clara University 20+ years ago. After wasting time and money in his 20s, he began investing buy and hold rental
properties and never looked back. Michael grew his rental property portfolio from a single rental house to financial freedom in 15 years. Now that he no longer has a day job, he shares his story via his self-published book and YouTube Channel, both called One Rental at a Time.
SURVIVE: In March, we reached out to all tenants to check on them, and to let
34 | think realty magazine :: june 2020
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