Surviving the
Apocalypse
I am an unapologetic apocalypse fiction buff. Climate
change, aliens, zombies, vampires, you name it. I love anything that involves
the near total collapse of civilization and the efforts of a few enterprising
individuals to survive and thrive in the ruins of the devastation.
In college I would ply my friends with a couple of beverages
for a spirited discussion of our “apocalypse contingency plans” after watching
a movie in the genre. While our plans varied greatly depending on the disaster,
a couple of topics were recurring themes for continued survival in an apocalyptic/post
apocalyptic world:
·
Shelter
·
Weapons for offensive and defensive efforts
·
Food
·
Hope
What does this have
to do with real estate? If are still reading this commercial real estate
blog after the difficult years of 2008 – 2010. Congratulations, you survived a
commercial real estate apocalypse. No doubt you learned some lessons depending
on your experience. Here are some lessons I have for surviving the next
apocalypse and thriving in our rapidly improving environment today.
- Maintain a fortress balance sheet. Commercial real estate investing survival depends on your financial ability to withstand a downturn. Maintaining a strong balance sheet is key.
- Keep some powder (capital) dry. Always keep some cash on hand to cover an unexpected event or to take advantage of an opportunity.
- Maintain a strong professional network. If you are actively involved in real estate investing, make sure you are in “the know”. Take time to grow your relationships with individuals who are in the front lines of the commercial real estate business. Property managers, brokers, attorneys, and yes other investors.
- Review your goals and dreams. Without a vision or goal it’s easy to get off track in your investing efforts. Why continue owning real estate? What is important to you? Keeping the big picture in mind will help you overcome the daily grind of staying on top of your investments.
