3 Easy Ways To Dominate The Real Estate Market Crash in 2024

[00:00:00] This week's listener of the week is you. So I have to tell you a funny story. Some of you know, my viral bird sensation, Cheerio, who actually has been my bird since I was 10, but lives at my parents house because my mother loves the bird. My husband and I have three cats. Naturally birds and cats don't work well in the house, but my parents are out of town.

So I brought the bird over to our house. Um, and the only place for the bird to. Be away from the cats is in the podcast studio forward slash second bedroom. And long story short, I was like, okay, I'll record the podcast with the bird in the room and it'll be funny. But then I was talking and the bird was just screaming.

And so the podcast studio actually has a outdoor balcony. And so. I have the bird in the cage, it's warm [00:01:00] outside on an outdoor balcony and I'm literally listening to her, um, talk to the other birds outside, which is so funny. So if you hear some goofy squawking, that's definitely a bird. Uh, but if you leave a five star review, you might be next week's listener of the week, week, week.

So as humans, In our most innate responses to scary situations, so we'll say, uh, we're going to break this down to hunter gatherer vibes and you are being hunted by a saber toothed tiger. Okay? Overall bad situation. The human response in the situation of being hunted. by an animal would be to run the other way.

And humans innately and psychologically have the [00:02:00] same response to issues in the markets. So, for example, stock market crashes per human psychology. Humans, 90 percent plus of humans will pull all their money out of the market, right? It's the same response to being hunted. However, you know, I hope I, you don't find yourself being hunted by a vicious animal, uh, but you will find yourself in a situation where a market corrects itself.

What's interesting about that is that

historically when the stock market crashes It's going to explode in an upward trajectory significantly in the coming weeks, and it's the best time to buy. So while psychology and human nature say, run away from [00:03:00] it, the numbers, right, history, fact, show us that our, what we physically feel psychology, psychologically is the exact opposite that should happen.

So, I want to talk to you about a property we bought, uh, the week of September 11th, 2001. Uh, we were, we were buying up warehouses and September 11th happened and this owner of this brilliant property that we still own, lease and manage to this day, thought the world was ending and decided he wanted to sell, sold it to us.

We went under contract that week, which is really rare, and we wound up buying it. [00:04:00] His fight or flight response was sell, and we did the opposite. We leaned into it, and we bought what wound up to be an... Unbelievable investment. So, I know if you turn on the media, you're gonna see it everywhere. Commercial real estate's dead because of work from home.

Uh, you know, the commercial real estate market is crashing. And while, yes, it is changing significantly, a change does not mean a crash. A change means opportunity. You are here for a reason and the reason is this. When the markets fall, the opportunities come. Educate yourself and prepare yourself because all the best investors in the world say the best things happen when the economy [00:05:00] crashes.

You do not want to get left in the dust. Now, a mistake that a lot of us make is not realizing this or realizing it too late. Right? We can look back at the way the stock market crashed in 2020. Sophisticated investors bought the dip. There, and they got Amazon stock at, you know, everybody's smiling right now because they bought the dip in 2020.

How are you going to navigate that for your investing future? Right? A lot of people let fear take hold of their investment portfolio. You're stronger than your fear. You're here right now. You completely understand that when you can eliminate fear, opportunity is on the other side of that door. And the reason you make that mistake [00:06:00] is basic human psychology, right?

The average... Human doesn't realize how average we really are, and that's okay, that's normal, that's human nature. But it's the same thing as being hunted by a wild animal, right? Sure, if you're being hunted by a wild animal, you're probably not worried about the stock market or your investment portfolio.

But psychologically, these two instances are one and the same, right? So, it's not just real estate, it's not just investing, it's human behavior. When we fear, we run away. But the gold in investing, the, the true Wealth, the jump, not the slow and steady safe way, [00:07:00] the risky, high stakes, scary way, the scary jumps can often, often pay dividends in the long run, and I'm not saying Buy something stupid.

There's never the right time to buy something dumb, but luck favors the bold. And there is nothing but information about the way that investors succeed primarily during downturns. Look it up. I just read the book by Tony Robbins, Unshakeable, and it just, it literally talks about how to Invest in the stock market in a sophisticated way and real estate is not different, right?

so

if You decide. You...[00:08:00] 

The cost of making this mistake is regret.

The cost of making this mistake is living a life where you work for your money instead of your money working for you. You don't want to live in regret that you didn't buy the dip the last time waiting for the next time, just so when the next time comes around you already forgot about the regret from the last time.

The property we bought right after 9 11 could be sold right now for four or five times the price that we bought it for easily, and we have collected income on that property in the last 22 23 years since [00:09:00] we bought it. That property paid for itself a few times. That seller let fear Dictate his investing and ultimately he lost, right?

And it's not a zero sum game. However, it's really important to understand that fear will keep us away from our investment goals and the most sophisticated investors. lean into it. They take away the fear because they look at the statistics, they look at the history, they look at the cycles, and they realize the time when there's most fear in the market, there's also the most opportunity.

So what can you do to get ahead? Well, good, good news, you're doing it. Study investment cycles. Maybe you want to invest in real estate. Maybe you want to invest in the stock market. Maybe you want to invest in real [00:10:00] estate through the stock market. Understand your relationship with fear. Watch the crowd. Is the crowd running away from the saber toothed tiger?

Is the crowd saying commercial real estate is dying? That's a really good indicator of, uh, you know, the general psychology of the notion of what's actually going on, right? Everyone's saying right now commercial real estate is dying because of work from home. That is a, uh, fake, mass connotation of fear that commercial real estate investors are loving because they realize that mass...

You know, that fear to the public will make the general public run away, eliminate the [00:11:00] competition so that you can finally have your opportunity to buy, right? 2020, 2021, 2022 interest rates were so low, everybody, and so much cash had been injected into our economy. Everybody was buying. Everybody was a sophisticated real estate.

Investor. 2023, the interest rates have crept up. 2024, they're likely to continue in that trajectory. Everybody becomes less sophisticated when they have negative leverage. What does that mean for us? Don't assume there's no opportunity because of whatever you read on the internet or what you're... I always find it funny I hear people on the internet who tell me all about commercial real estate but don't work in the industry.

Don't own any. That's always [00:12:00] entertaining to me. Your negative assumptions, right, they only hinder yourself. Those folks who are telling me about the industry they don't work in, they're only hurting themselves and the people who listen to them. It's a very strange, somewhat comedic cycle, but It doesn't matter because you and I are here, we're educated, we're constantly educating ourselves to understand where the opportunity is in times of market fluctuation.

So, what questions do you have? I want you to comment any questions you have on my, uh, YouTube. Let's do YouTube at Aviva Real Estate. If you want to learn more about commercial real estate, I've got a free guide here in my show notes on the podcast. And next week, we're going [00:13:00] into episode 29, what in the world could possibly go wrong in commercial real estate, state, state.

See you next week.