There’s no sugarcoating it; inflation is skyrocketing, and we’re headed toward one of the worst economic downturns in recent years. Property prices are rising, and buyers have put their purchases on hold. Real estate investors across the country are scrambling for ways to survive in this challenging economic market.
A few things are under your control if you plan ahead. Preparing for the slowdown and making long-term decisions can help you pick up the momentum and emerge as a strong market leader once the real estate market picks up.
This post shares the top ways to ride out the economic downturn and recession-proof your business.
1. Look Beyond Bank Financing
Banks will likely freeze up lending during the economic slowdown. As a result, you’ll have to look elsewhere to meet your funding requirements. Transaction lenders like DoubleClose.com can be practical alternatives.
As the best transactional funding provider, we help you double-close real estate deals by offering 100% of your purchase, including closing costs and fees. Better still, we offer fast, same-day transactional funding with no personal eligibility criteria. We ensure you have access to financing when needed, helping you stay afloat during these challenging times.
2. Recession-Proof Future Investments
This next tip is more speculative than guaranteed, so we recommend you do your research. Don’t just focus on assets likely to be obsolete soon in your market. Avoid investing in properties that could become obsolete soon, including older office complexes, mobile home parks, and multifamily units in tertiary markets. Instead, consider investing in recession-proof assets like medical complexes and small industrial facilities.
3. Do Not Stop Marketing Your Business
Now is not the time to stop your marketing efforts. The last thing you want to do is drop off the radar of potential clients. The longer you’re gone, the more challenging it is to get back on track and move ahead. Use the downtime to focus more on improving brand awareness and reputation through social media and digital marketing. Once your clients get back to buying or selling a property after the recession, your business will be the first name they think of.
4. Improve Relationships With Existing Clients
Maintain a good rapport with existing and previous clients. Your client relationships are crucial as they can help you overcome the economic slowdown. No matter the market condition, your priority should be to provide clients with exemplary service. Once the markets return to normal, your clients will remember and reward your loyalty.
5. Stay Updated With Real Estate Market Conditions
Remember that almost all industries will be affected by the economic downturn. Knowing what’s happening in different sectors can help you understand the real estate market contextually in the overall financial picture. While housing demand may reduce, prices will continue to increase in specific sectors. Understanding economic trends can help you make informed decisions that impact your business positively.
Use these tips to recession-proof your business and emerge stronger in the long run. Your primary goal is to keep communicating with your target audience, tracking the pulse of industry trends, and keeping up with your business until things improve.