What would you do if half your business dropped off?
The Apocalypse Test
Have you done a Stress Test?
Wendy Sweet and Bill Fairman are joined by Jonathan Davis to go through their Stress Test and what they are doing to prepare for the worst so they don't get caught.
In Part Two, they discuss spreading the risk by having ten houses in your portfolio, not just one, or investing in ten notes, not one.
One task they do monthly is review their financial statements, expenses, their bills. All may be little individual expenses but over time it can add up.
What do you do if you lose most of your business?
1) Communicate with people in and outside of the business
2) What are your highest expenses?
3) Review and communicate the results of the Stress Test
4) Reach out for more capital
5) Help our investors increase their cash positions
6) What are your strategies to handle downturns?
Wendy, Bill and Jonathan discuss different strategies.
When you have difficult times, and everyone does, you have to be transparent and don't be afraid to ask for help.
Financial Tip: Take 25% of your income off the table and see what happens. Then move to 50%.
If you are serious about building a strong long term business, the concepts shared in today's show are crucial.
Carolina Capital is a hard money lender serving the needs of the “Real Estate Investor” and the "Small Builder" borrower who is striving to build wealth and generate income for themselves and their families. We offer “hard money rehab loans” and "Ground up Construction Loans" for investors only in NC, SC, GA, VA and TN (some areas of FL, as well).
As part of our business practices, we also serve as consultants for investors guiding them to network with other investors and educating them in locating and structuring transactions. Rarely, if ever, will you find a hard money lender willing to invest in your success like Carolina Capital Management.
The Apocalypse Test
Have you done a Stress Test?
Wendy Sweet and Bill Fairman are joined by Jonathan Davis to go through their Stress Test and what they are doing to prepare for the worst so they don't get caught.
In Part Two, they discuss spreading the risk by having ten houses in your portfolio, not just one, or investing in ten notes, not one.
One task they do monthly is review their financial statements, expenses, their bills. All may be little individual expenses but over time it can add up.
What do you do if you lose most of your business?
1) Communicate with people in and outside of the business
2) What are your highest expenses?
3) Review and communicate the results of the Stress Test
4) Reach out for more capital
5) Help our investors increase their cash positions
6) What are your strategies to handle downturns?
Wendy, Bill and Jonathan discuss different strategies.
When you have difficult times, and everyone does, you have to be transparent and don't be afraid to ask for help.
Financial Tip: Take 25% of your income off the table and see what happens. Then move to 50%.
If you are serious about building a strong long term business, the concepts shared in today's show are crucial.
Carolina Capital is a hard money lender serving the needs of the “Real Estate Investor” and the "Small Builder" borrower who is striving to build wealth and generate income for themselves and their families. We offer “hard money rehab loans” and "Ground up Construction Loans" for investors only in NC, SC, GA, VA and TN (some areas of FL, as well).
As part of our business practices, we also serve as consultants for investors guiding them to network with other investors and educating them in locating and structuring transactions. Rarely, if ever, will you find a hard money lender willing to invest in your success like Carolina Capital Management.
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Hi everyone. It's bill and Wendy from Carolina capital management.
Again, along with Jonathan Davis on our last episode and Oh, by the way, I'm
sorry, I keep forgetting. Please like us, please share Carolina capital. Nope.
Carolinahardmoney.com is the website and [inaudible] our last episode we talked
about stress testing our portfolio. We touched a little bit on what do you do
internally with [inaudible] employees and expenses. How do you make up for
let's say a 25% loss of your income or maybe 50% of your business for a certain
period of time? What do you do? And we were talking about not just market
cycles that are controlling this, but you know, possible black Swan events
where no one has control over that, but you still need to, you don't want to
stick your head in the sand. You still need to position yourself for what do
you do in an event where you lose that? There's a lot of companies out there
that have, you know, three or four big customers
Again, along with Jonathan Davis on our last episode and Oh, by the way, I'm
sorry, I keep forgetting. Please like us, please share Carolina capital. Nope.
Carolinahardmoney.com is the website and [inaudible] our last episode we talked
about stress testing our portfolio. We touched a little bit on what do you do
internally with [inaudible] employees and expenses. How do you make up for
let's say a 25% loss of your income or maybe 50% of your business for a certain
period of time? What do you do? And we were talking about not just market
cycles that are controlling this, but you know, possible black Swan events
where no one has control over that, but you still need to, you don't want to
stick your head in the sand. You still need to position yourself for what do
you do in an event where you lose that? There's a lot of companies out there
that have, you know, three or four big customers
[inaudible] all their eggs in one basket. Yeah, that's a
scary place.
scary place.
And if they lose one of those customers, you can lose a
ton of business now. It helps you because you're not constantly going out there
looking for business.
ton of business now. It helps you because you're not constantly going out there
looking for business.
You save on the marketing. Yep.
It's a, it's very difficult. This is why I like diversity
and you know, I've been commissioned sales most of my life and that was the one
thing I always wanted to make sure is I would prefer to have more customers and
do a little bit more work than having just a few larger customers. Cause it
really is devastating if you, you alluded a few weeks, we know people in the
commercial brokerage arena that close one or two or three deals a year. Yeah.
They're large deals and they make a good living. But if you just lose one of
them, there's half year a yearly income is gone. You know, how do prepare for
that?
and you know, I've been commissioned sales most of my life and that was the one
thing I always wanted to make sure is I would prefer to have more customers and
do a little bit more work than having just a few larger customers. Cause it
really is devastating if you, you alluded a few weeks, we know people in the
commercial brokerage arena that close one or two or three deals a year. Yeah.
They're large deals and they make a good living. But if you just lose one of
them, there's half year a yearly income is gone. You know, how do prepare for
that?
it's just like investing in notes and, and real estate
that you're buying and renting out. You want to have [inaudible] you know more
than one house to rent and you want to have more than one note that you're
buying and selling cause you're, you're going to have that loss factor in there
no matter what you do know what they say. You know you're in real estate. You
either have lost money or you know you're about to not with us though. The
thing is if you're going to buy a note, you buy 10 if you buy houses, you want
to buy 10.
that you're buying and renting out. You want to have [inaudible] you know more
than one house to rent and you want to have more than one note that you're
buying and selling cause you're, you're going to have that loss factor in there
no matter what you do know what they say. You know you're in real estate. You
either have lost money or you know you're about to not with us though. The
thing is if you're going to buy a note, you buy 10 if you buy houses, you want
to buy 10.
You don't want to buy one because you're always going to
have a stinker or two and you need the other ones to make them. And then that
also gives you time to find the ones that are not performing and get rid of
those and find new ones that will perform.
have a stinker or two and you need the other ones to make them. And then that
also gives you time to find the ones that are not performing and get rid of
those and find new ones that will perform.
That's right. So to kind of recap a little bit about what
we talked about earlier, we were, you know, at our trusted advisors meeting for
freedom founders and they came in and said, okay, it's February 9th the
newspapers at your door and the headline in the newspaper says, you know, Carolina
hard money just lost 50% of their business. What would you do? What, what are
you going to do? And so we had to sit down and, and just come up with what we
were going to do and it was a great exercise for us to to go through. We did
talk about, you know, making the company lien what, who would be on your lien
list. That's kind of kind of scary. We also talked about the importance of
doing the stress test on where you are now, the current portfolio you have, all
the things that you're doing.
we talked about earlier, we were, you know, at our trusted advisors meeting for
freedom founders and they came in and said, okay, it's February 9th the
newspapers at your door and the headline in the newspaper says, you know, Carolina
hard money just lost 50% of their business. What would you do? What, what are
you going to do? And so we had to sit down and, and just come up with what we
were going to do and it was a great exercise for us to to go through. We did
talk about, you know, making the company lien what, who would be on your lien
list. That's kind of kind of scary. We also talked about the importance of
doing the stress test on where you are now, the current portfolio you have, all
the things that you're doing.
What are you doing now that you can cut back and you know
we talked about the lien list, but the lien list as far as employees go.
Another thing, and we do this on a regular basis, which I love that we do this
monthly, this was brought up in the meetings. How often do you go through your
financial statements, your bank account statements, your credit card
statements, and see all the things that you probably don't need to be doing?
Yup. We, you know, we do that in every one of our financial meetings every
month. How many subscription services do you have? How many $10 YouTube videos?
And all the little stuff. I mean, even a car wash, I think out a car wash on
there at $29 a month for a year on my personal credit card. And I didn't
remember that I even had it anymore. And you know, can you reduce your phone bill?
we talked about the lien list, but the lien list as far as employees go.
Another thing, and we do this on a regular basis, which I love that we do this
monthly, this was brought up in the meetings. How often do you go through your
financial statements, your bank account statements, your credit card
statements, and see all the things that you probably don't need to be doing?
Yup. We, you know, we do that in every one of our financial meetings every
month. How many subscription services do you have? How many $10 YouTube videos?
And all the little stuff. I mean, even a car wash, I think out a car wash on
there at $29 a month for a year on my personal credit card. And I didn't
remember that I even had it anymore. And you know, can you reduce your phone bill?
Can you reduce your cable bill? All of these things that
you know, seem like a little bit as you're adding up. But I remember we sat
through one and we've saved ourselves $16,000 for the year and just little
bitty things that had just creeped up, you know. So that's made us start doing
it on a yearly basis. I mean on a monthly basis. And I'm really glad that we're
doing that. But I do have a list of, I think eight things in front of me. You
might have a couple more that we talked about in the meeting when we discussed
what is the first thing that you would do? And I think, I think the first thing
that everybody kinda came up with was communicate now what could be coming down
the pike. Yes. And do that constantly. So everybody knows both internally in
your office and externally with your customers or your clients and communicate
when it happens.
you know, seem like a little bit as you're adding up. But I remember we sat
through one and we've saved ourselves $16,000 for the year and just little
bitty things that had just creeped up, you know. So that's made us start doing
it on a yearly basis. I mean on a monthly basis. And I'm really glad that we're
doing that. But I do have a list of, I think eight things in front of me. You
might have a couple more that we talked about in the meeting when we discussed
what is the first thing that you would do? And I think, I think the first thing
that everybody kinda came up with was communicate now what could be coming down
the pike. Yes. And do that constantly. So everybody knows both internally in
your office and externally with your customers or your clients and communicate
when it happens.
Exactly. So we were kind of thrilled. We had some
communication ideas already in place. Um, yeah, cause it's, you know, it's,
it's, it's great to have a plan when everything goes wrong and that's, that's
fine. But it's what are you doing now? What are you doing to prepare? And, and
that was an affirmation, I think, for us where we said, yeah, okay, yeah.
Affirmation. Two points. So, you know, we were, we were like, yeah, we are. We
are taking those steps to get prepared for whatever it is and whatever it looks
like. And I mean, we hope it's nothing and I hope it's never happens, but you
know what, what does Warren buffet say? No. Oh, when the tide goes out, that's
when you found out who was swimming naked. That's exactly right. I love that
one. I love that one. It's a great thing to picture in your head. So it's the
truth
communication ideas already in place. Um, yeah, cause it's, you know, it's,
it's, it's great to have a plan when everything goes wrong and that's, that's
fine. But it's what are you doing now? What are you doing to prepare? And, and
that was an affirmation, I think, for us where we said, yeah, okay, yeah.
Affirmation. Two points. So, you know, we were, we were like, yeah, we are. We
are taking those steps to get prepared for whatever it is and whatever it looks
like. And I mean, we hope it's nothing and I hope it's never happens, but you
know what, what does Warren buffet say? No. Oh, when the tide goes out, that's
when you found out who was swimming naked. That's exactly right. I love that
one. I love that one. It's a great thing to picture in your head. So it's the
truth
that would be the people that are over leveraged under
reporting.
reporting.
That's right. That's exactly right. So communication was a
really big thing. And one of the things that we've committed to this year for
2020 as we're making sure that we communicate on a monthly basis via video and
email to all of our our lender investors, we want to make sure that all of them
are informed knowing that you know what it is we're working on and just kind of
our thoughts. So what's coming down the pike. And the other thing too, I really
liked that we had already put into place too is we are putting together an
advisory board made up of our lenders and investors and it's, it's a great
opportunity to, yeah, it's important to discuss exactly what we're discussing
now, which is what do we do when this happens? What do you all expect of us?
What are you all doing, you know? Yeah, exactly. Because you know these folks
are giving us their money. We want them to be whole as well in their other
investments and their personal portfolios too. Cause we certainly don't want
them in a bad situation. You know when the correction comes down the pike too.
We want to help each other, you know, stay afloat. So we were really excited
about having that setup in place.
really big thing. And one of the things that we've committed to this year for
2020 as we're making sure that we communicate on a monthly basis via video and
email to all of our our lender investors, we want to make sure that all of them
are informed knowing that you know what it is we're working on and just kind of
our thoughts. So what's coming down the pike. And the other thing too, I really
liked that we had already put into place too is we are putting together an
advisory board made up of our lenders and investors and it's, it's a great
opportunity to, yeah, it's important to discuss exactly what we're discussing
now, which is what do we do when this happens? What do you all expect of us?
What are you all doing, you know? Yeah, exactly. Because you know these folks
are giving us their money. We want them to be whole as well in their other
investments and their personal portfolios too. Cause we certainly don't want
them in a bad situation. You know when the correction comes down the pike too.
We want to help each other, you know, stay afloat. So we were really excited
about having that setup in place.
So what was number one on your list as far as internal?
Yeah, specific to our business employees expenses, you know when it cost us to
run the business. But do you think the number one thing that we're looking at
here first, what's our highest expense?
Yeah, specific to our business employees expenses, you know when it cost us to
run the business. But do you think the number one thing that we're looking at
here first, what's our highest expense?
I think it's your salary. I mean our house expenses, expenses.
Like I said, you don't have to defend yourself. You're good. I'm good with most
companies. Our highest expense are our employees. That's, I think that makes up
right at a third of of our expenses. Right. So it's important that not only do
we have the right people in the right seats, but that they're cross trained.
Yes. And that we've got, you know, we've got a top tier level employee in place
and we definitely are, are sitting in that position. We're pretty sure sided in
them or able to have it to I guess from loan origination or loan servicing to
property management. They all have those skills and those capabilities. That's
right. That's right. So we're, we're excited about that. So keeping that
communication out was number one. Number two, one of the guys, another fund
manager, Mike Zlotnik said we should do a put option on insurance. Yeah. Or put
insurance on a put option insurance on. So either one of you want to talk about
that. I'm going to leave it to bill. I'm still kind of, yeah, it's insurances.
It's too uppity for me.
Like I said, you don't have to defend yourself. You're good. I'm good with most
companies. Our highest expense are our employees. That's, I think that makes up
right at a third of of our expenses. Right. So it's important that not only do
we have the right people in the right seats, but that they're cross trained.
Yes. And that we've got, you know, we've got a top tier level employee in place
and we definitely are, are sitting in that position. We're pretty sure sided in
them or able to have it to I guess from loan origination or loan servicing to
property management. They all have those skills and those capabilities. That's
right. That's right. So we're, we're excited about that. So keeping that
communication out was number one. Number two, one of the guys, another fund
manager, Mike Zlotnik said we should do a put option on insurance. Yeah. Or put
insurance on a put option insurance on. So either one of you want to talk about
that. I'm going to leave it to bill. I'm still kind of, yeah, it's insurances.
It's too uppity for me.
I put option, I'm going to have to defer until our next
meeting when I can talk to Mike.
meeting when I can talk to Mike.
Yeah,
I did the look it up and I was trying to translate it into
what it actually is for and then how you and ensure it.
what it actually is for and then how you and ensure it.
Okay, But you don't stocks all the time.
Yeah. But I don't know how you, you're just essentially
taking out insurance that you're going to come up with a particular sales
price. Let's say you have an asset that is currently worth 300,000 right? So
I'm going to insure, I'm going to pay premiums to an insurance company that is
going to pay me the difference between the 300,000 and when I ended up having
to sell it for a future date if we lose.
taking out insurance that you're going to come up with a particular sales
price. Let's say you have an asset that is currently worth 300,000 right? So
I'm going to insure, I'm going to pay premiums to an insurance company that is
going to pay me the difference between the 300,000 and when I ended up having
to sell it for a future date if we lose.
Right. Yeah. So as you all can tell, it's not a system
that we're going to yeah, probably not. Probably not. The fact that it's
available. Yeah. Pretty amazing. So we do need to check into that for sure.
that we're going to yeah, probably not. Probably not. The fact that it's
available. Yeah. Pretty amazing. So we do need to check into that for sure.
Reasonably priced then who wouldn't do it? Yeah, that's
true. You get insurance on everything else. Right? And speaking of Mike
Zlotnik, he is going to be our special guest next week.
true. You get insurance on everything else. Right? And speaking of Mike
Zlotnik, he is going to be our special guest next week.
Awesome. Awesome. So number three, we're short on time, so
I want to make sure we get through all this. So number three was the stress
test to review and communicate the stress test. So we review the stress test,
how did it come through for us and you know, where do we need to make those
changes and then we want to communicate the results of that stress test to our
customers and our employees. Right. Number four was an alive, love this one was
reach out for more capital because when you're going through this, what better
time is this than to buy up all the stuff that's just dropped in value, which
is what Warren buffet did, right? When you're the ones that are not freaking
out and not hitting the panic button, you're the ones getting the opportunities
right because people will sell for, you know, pennies on the dollar and you
know that the market is a cyclical thing and okay we go back around, we'll come
back around.
I want to make sure we get through all this. So number three was the stress
test to review and communicate the stress test. So we review the stress test,
how did it come through for us and you know, where do we need to make those
changes and then we want to communicate the results of that stress test to our
customers and our employees. Right. Number four was an alive, love this one was
reach out for more capital because when you're going through this, what better
time is this than to buy up all the stuff that's just dropped in value, which
is what Warren buffet did, right? When you're the ones that are not freaking
out and not hitting the panic button, you're the ones getting the opportunities
right because people will sell for, you know, pennies on the dollar and you
know that the market is a cyclical thing and okay we go back around, we'll come
back around.
So essentially you're sending up an opportunity fund
[inaudible] so you'll be collecting funds, not necessarily to buy stuff right
now but to try and, and it's tough to time it, but you can still buy stuff on
the way down and still make money just like in stocks. And it happened the last
boundary, that's where everybody made it.
[inaudible] so you'll be collecting funds, not necessarily to buy stuff right
now but to try and, and it's tough to time it, but you can still buy stuff on
the way down and still make money just like in stocks. And it happened the last
boundary, that's where everybody made it.
You're right. And I think that picked up, it says sell for
more cash, gather more cash, which is also part of reach out for more capital.
And somebody talked about using whole life policies at that point as well. So
number six, help our investors increase their cash positions, which is what
these conversations are for right now. Exactly. No going through, I mean it can
even probably be on a one on one basis what assets or in your portfolio that
maybe aren't favorable in a shift in market. Right. And identifying those and
selling them and at a price that is perhaps right now the height of the market.
Right? Which would be a good time to exit those, those assets in cash.
Absolutely. Absolutely.
more cash, gather more cash, which is also part of reach out for more capital.
And somebody talked about using whole life policies at that point as well. So
number six, help our investors increase their cash positions, which is what
these conversations are for right now. Exactly. No going through, I mean it can
even probably be on a one on one basis what assets or in your portfolio that
maybe aren't favorable in a shift in market. Right. And identifying those and
selling them and at a price that is perhaps right now the height of the market.
Right? Which would be a good time to exit those, those assets in cash.
Absolutely. Absolutely.
And by the way, cash doesn't mean in a Mason jar or buried
in the backyard. I prefer the mattress. You can still, you can still make money
on cash. Just like what we were talking about earlier. I know Chris miles, we
had him on as a guest, he has the whole life policy. You can sell something,
take that cash that you get from it and you can sell fund the whole life policy
that's gonna pay you four and a half percent guaranteed on that money and it's
got asset protection involved. And then when it's time to buy an asset, you can
use that capital to buy. And at the same time, you don't even have to take that
money out. You can just borrow against it and it's still making money inside of
that.
in the backyard. I prefer the mattress. You can still, you can still make money
on cash. Just like what we were talking about earlier. I know Chris miles, we
had him on as a guest, he has the whole life policy. You can sell something,
take that cash that you get from it and you can sell fund the whole life policy
that's gonna pay you four and a half percent guaranteed on that money and it's
got asset protection involved. And then when it's time to buy an asset, you can
use that capital to buy. And at the same time, you don't even have to take that
money out. You can just borrow against it and it's still making money inside of
that.
That's right. Like even right now is a great opportunity
if you have equity in your properties, any properties that you have out there,
I wouldn't go personally any higher than 75% some people would, but I would
stuck stick at 75% but any of course. But any equity that I have, I would try
to get a line of credit put in place now because when you need it, they're not
going to give it to you. Right. So having that as an option as is always a
smart way to go. Our other one here says one man's crisis is another man's
opportunity. Right. And then we haven't parentheses beside that strategic
partners. Um, that's when it's really, really important for, for us to gather
our trusted advisor friends, other fund managers that we know like, and trust.
And you know, what can we do together to attack the downturn?
if you have equity in your properties, any properties that you have out there,
I wouldn't go personally any higher than 75% some people would, but I would
stuck stick at 75% but any of course. But any equity that I have, I would try
to get a line of credit put in place now because when you need it, they're not
going to give it to you. Right. So having that as an option as is always a
smart way to go. Our other one here says one man's crisis is another man's
opportunity. Right. And then we haven't parentheses beside that strategic
partners. Um, that's when it's really, really important for, for us to gather
our trusted advisor friends, other fund managers that we know like, and trust.
And you know, what can we do together to attack the downturn?
And I don't want to, you know, say run from it because
that's what a lot of people did last time. I mean I was one of them running
from what was going on. But really this is a, you know, any, any type of a
downturn, like, like you know what happened in 2008 is only an opportunity for
those who are prepared for it. Yeah. It's like trying to change your, your
psychology cause even if you take stock markets, most people buy high and sell
low because it's [inaudible] [inaudible] so you know, it's, it's that
psychology like Oh this the stock is trending. Let me go ahead and buy it. You
probably bought it at the top. It's market all this, the stock isn't trending
anymore. I need to get rid of it. I'm scared. Oh well you know, you just sold
it at the bottom of the market. That's right.
that's what a lot of people did last time. I mean I was one of them running
from what was going on. But really this is a, you know, any, any type of a
downturn, like, like you know what happened in 2008 is only an opportunity for
those who are prepared for it. Yeah. It's like trying to change your, your
psychology cause even if you take stock markets, most people buy high and sell
low because it's [inaudible] [inaudible] so you know, it's, it's that
psychology like Oh this the stock is trending. Let me go ahead and buy it. You
probably bought it at the top. It's market all this, the stock isn't trending
anymore. I need to get rid of it. I'm scared. Oh well you know, you just sold
it at the bottom of the market. That's right.
We, we had a local broker and on the Charlotte market, his
name was Danny Fontana. He passed away a few years ago, but he had a radio show
and he always said that the stock market is the only store that when you put
any anything on sale, customers run screaming out of the store.
name was Danny Fontana. He passed away a few years ago, but he had a radio show
and he always said that the stock market is the only store that when you put
any anything on sale, customers run screaming out of the store.
It really is. It really, really is. The next thing that we
come upon is the go lien strategy and you know we talked about that pretty in
depth on the last podcast part one of this podcast. But it really, really is
important to think about that lien strategy. And that's not just with your
employees, it's with your portfolio, it's with your expenses, it's everything
you're doing. You know, I used to have people make fun of me because me and my
dad had a text that we send back and forth. When I see gas at an incredibly low
price, I always text my dad and say, Hey look at what it is today. And you know
we get excited about saving 0.99% you know that that not even whole penny is
kind of exciting. But to be thinking that way, what are the little things that
you can cut out? Cause that 0.99% actually can add up to a lot of money when
you start really thinking about it right
come upon is the go lien strategy and you know we talked about that pretty in
depth on the last podcast part one of this podcast. But it really, really is
important to think about that lien strategy. And that's not just with your
employees, it's with your portfolio, it's with your expenses, it's everything
you're doing. You know, I used to have people make fun of me because me and my
dad had a text that we send back and forth. When I see gas at an incredibly low
price, I always text my dad and say, Hey look at what it is today. And you know
we get excited about saving 0.99% you know that that not even whole penny is
kind of exciting. But to be thinking that way, what are the little things that
you can cut out? Cause that 0.99% actually can add up to a lot of money when
you start really thinking about it right
That way. I can afford that case of toilet paper at
Costco.
Costco.
Yeah, of course you have to rent a storage facility to
store all the stuff that you're buying at Costco. But you know you said that
lean list into your expenses as well and it kind of goes into like our plan if
things do change and going lien into our expenses into how do we convert our
portfolio from what it is right now, which is you know, mostly fixing flips or
rent, you know, rental loans into all rental loans and part of saving that
money is avoiding foreclosure, right? It's an added expense. It's at a
timeframe, it's, it's all these things. So how do you get creative with your
borrowers and your clients to avoid foreclosure? That's one of the things that
we just, we discussed it. That's right. That's right.
store all the stuff that you're buying at Costco. But you know you said that
lean list into your expenses as well and it kind of goes into like our plan if
things do change and going lien into our expenses into how do we convert our
portfolio from what it is right now, which is you know, mostly fixing flips or
rent, you know, rental loans into all rental loans and part of saving that
money is avoiding foreclosure, right? It's an added expense. It's at a
timeframe, it's, it's all these things. So how do you get creative with your
borrowers and your clients to avoid foreclosure? That's one of the things that
we just, we discussed it. That's right. That's right.
By the way, and we're down to a little less at a minute
and a half here. But one of the things that I think will help all businesses is
the profit first model.
and a half here. But one of the things that I think will help all businesses is
the profit first model.
Yeah, that's a great book. Profits first. It is a great
book
book
and it forces you to work within your, your budget, what's
leftover. See, in most companies, your profit is what's left over in the profit
first. You take your profit and your taxes off the table at the beginning and
then you look at what you have left over and you only work with that. And if,
by the way, if what you have left over is not enough to cover your expenses,
you need to catch your expenses, right? So, so that's a great tool to figure
out where you are spending, and we talked about this earlier, making sure that
we're not spending money on stuff we're not utilizing anymore, or maybe you're
not getting the value out of it. Virtual assistants employees are a good way to
start with that too. If, if it's something that can be done by someone off
site, it's not as expensive as having somebody inside. Right,
leftover. See, in most companies, your profit is what's left over in the profit
first. You take your profit and your taxes off the table at the beginning and
then you look at what you have left over and you only work with that. And if,
by the way, if what you have left over is not enough to cover your expenses,
you need to catch your expenses, right? So, so that's a great tool to figure
out where you are spending, and we talked about this earlier, making sure that
we're not spending money on stuff we're not utilizing anymore, or maybe you're
not getting the value out of it. Virtual assistants employees are a good way to
start with that too. If, if it's something that can be done by someone off
site, it's not as expensive as having somebody inside. Right,
right. You know the other thing too, I think we need to
make sure that, that we just say this and everybody really should adhere to this
as you, you know, when you've got things that are not going well and you're
having an issue on, you know, how are you going to solve this? You can't be
afraid to be transparent about it with your centers of influence. The people
that you know that are in business that you respect, that you know, like, and
trust that are there to help build you back up and not tear you down and go off
and tell everybody. You can't be afraid of that. You need to be transparent and
you can't be afraid to ask for help because somebody out there has been through
what you're going through.
make sure that, that we just say this and everybody really should adhere to this
as you, you know, when you've got things that are not going well and you're
having an issue on, you know, how are you going to solve this? You can't be
afraid to be transparent about it with your centers of influence. The people
that you know that are in business that you respect, that you know, like, and
trust that are there to help build you back up and not tear you down and go off
and tell everybody. You can't be afraid of that. You need to be transparent and
you can't be afraid to ask for help because somebody out there has been through
what you're going through.
Right. And it's very important to be a part of a
mastermind group. If you're not, you're not in one and you can't find one,
create your own. It doesn't have to be a lot of people that are in the same
industry, other business people that are in different places in their career
and their lives. It's a great way to bounce ideas off of people and get people
that are going to be honest with you. You don't want to be with people who are
always going to say yes. You want people that are going to tell you. That's the
stupidest thing I've ever heard you say. We've heard that before too. I hear
that a lot. That said, I hope this was helpful. The first thing you can do when
we started is taking 25% of your income off the table for six to nine months
just to test where you're going to be. Do you have the liquid assets to
overcome any of this? What are some things you can do to
mastermind group. If you're not, you're not in one and you can't find one,
create your own. It doesn't have to be a lot of people that are in the same
industry, other business people that are in different places in their career
and their lives. It's a great way to bounce ideas off of people and get people
that are going to be honest with you. You don't want to be with people who are
always going to say yes. You want people that are going to tell you. That's the
stupidest thing I've ever heard you say. We've heard that before too. I hear
that a lot. That said, I hope this was helpful. The first thing you can do when
we started is taking 25% of your income off the table for six to nine months
just to test where you're going to be. Do you have the liquid assets to
overcome any of this? What are some things you can do to
still survive when you ain't making that amount right?
Then do it at 50% and see what happens. Start out of 10, start out at 10 then
do 25 then do 50 just see where you are. And then when you start in that, if
you don't pass the 25 then you can start drilling down to the individual assets
and seeing which ones are weighing that down. That's great point.
Then do it at 50% and see what happens. Start out of 10, start out at 10 then
do 25 then do 50 just see where you are. And then when you start in that, if
you don't pass the 25 then you can start drilling down to the individual assets
and seeing which ones are weighing that down. That's great point.
Yeah, and then sell those off.
Exactly. I exit those out of your portfolio. Or you could
bury your head in the sand and ignore it all. There's somebody, somebody. will
buy that asset. That's right. One man's treasure is another man's trash or vice
versa. Right.
bury your head in the sand and ignore it all. There's somebody, somebody. will
buy that asset. That's right. One man's treasure is another man's trash or vice
versa. Right.
Barnum and Bailey, Ringling barn. And I said there's a
full born every day.
full born every day.
Yeah.
Anyway, thank you. So thanks so much for doing it as I'm a
bit, it was helpful. Remember to share, like check out some of the other videos
that are available. Somewhere on this screen up, down or sideways. There'll be
a couple little icons you can press. Get over to some of our archive videos. So
until we see you again, I believe our next episode we're going to have Mike
Slotnick with tempo opportunity fund, and he's gonna talk about his
opportunities in his fund. That's right. Mike's real good friend of us and he's
a really smart guy.
bit, it was helpful. Remember to share, like check out some of the other videos
that are available. Somewhere on this screen up, down or sideways. There'll be
a couple little icons you can press. Get over to some of our archive videos. So
until we see you again, I believe our next episode we're going to have Mike
Slotnick with tempo opportunity fund, and he's gonna talk about his
opportunities in his fund. That's right. Mike's real good friend of us and he's
a really smart guy.
He's the smartest Russian in the world and it's amazing.
It's amazing. He's an amazing guy. He's smart. Doesn't matter where he's from.
It's amazing. He's an amazing guy. He's smart. Doesn't matter where he's from.
Anyway, you'll have a great day. Thank you so much.
Hey, thanks so much for joining us this time. And if you
really like this show, you'll have an opportunity to see even more. You can
choose up here, you can choose over here, you can choose down here, right. Awesome.
Don't forget to like and subscribe to our page and we look forward to seeing
you again soon. Thanks.
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really like this show, you'll have an opportunity to see even more. You can
choose up here, you can choose over here, you can choose down here, right. Awesome.
Don't forget to like and subscribe to our page and we look forward to seeing
you again soon. Thanks.
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Podcast:
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Visit:
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