203 | Real Estate Investing During a Recession Or Financial Crisis With Coach Carson

ChooseFI | Financial Independence Podcast

Jonathan Mendonsa & Brad Barrett | Choose FI Media, Inc

Business, Careers, Investing

4.8 • 5.2K Ratings

🗓️ 6 May 2020

⏱️ 41 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

Small landlords are collecting 90% of rent during a crisis — defying national headlines predicting widespread defaults. Chad Carson breaks down why relationships, not just numbers, separate resilient real estate portfolios from those at risk. Chad Carson shares critical strategies for real estate investors navigating economic uncertainty. The conversation covers maintaining strong tenant relationships, calculating your burn rate, keeping adequate cash reserves, and identifying investment opportunities when markets shift. Carson reveals surprisingly high rent collection rates among small-scale landlords compared to alarming national statistics, and explains why proactive communication with tenants matters more than ever. Key Topics Discussed Tenant Management Strategies [00:07:11] Maintaining communication with tenants during crises Building strong tenant relationships leads to higher rent collection rates Liquidity and Cash Reserves [00:10:12] Keeping sufficient cash reserves to navigate uncertain times Understanding your burn rate and preparing for potential rent shortfalls Evaluating Investment Opportunities [00:23:34] Recessions can present strong investment opportunities Being proactive and analyzing market trends for potential deals Chapters [00:00:40] Introducing Coach Carson [00:02:01] Impact of Economic Uncertainty [00:07:11] Tenant Management Strategies [00:10:12] Liquidity and Cash Reserves [00:23:34] Evaluating Investment Opportunities Key Quotes "Understanding local real estate dynamics is crucial." [00:09:39] "Cash is still King." [00:11:02] "Seize recession opportunities for real estate investments." [00:23:34] "Build strong tenant relationships for better outcomes." [00:09:39] Action Items Evaluate your current cash reserves and burn rate [00:11:02] Reach out to your tenants to check on their wellbeing [00:09:39] Begin researching potential investment opportunities [00:25:49] Resources Coach Carson's Free Course [00:39:27] Terminology Cash Reserves [00:10:12] Funds set aside to cover expenses in case of emergency situations. Burn Rate [00:11:02] The rate at which an investor uses their cash reserves. 1% Rule [00:26:22] A guideline for evaluating rental properties: rent should equal 1% of the purchase price. ▶ Listen Next: Ep. 205 — Tax Loss Harvesting and Other Money Moves to Make During a Financial Crisis | Essential Listening

Transcript

Click on a timestamp to play from that location

0:00.0	Your listening to Choose FI Radio.
0:09.6	The blueprint for financial independence lives here.
0:20.4	If you're looking to unlock the secrets to financial independence and early retirement,
0:25.4	you're in the right place.
0:27.2	Stay tuned and join a community of like-minded people who are getting all fans to hear,
0:32.1	and taking control of their lives in the pursuit of financial independence.
0:36.3	Choose FI, your home for financial independence online.
0:41.4	Alright everyone, we have an awesome conversation to offer you with Coach Carson.
0:54.2	There's at least five big ideas I want to make sure that you're watching for and you're
0:57.3	taking action on.
0:58.3	Number one, how to manage your relationships with your tenants who, in many cases, their
1:01.9	jobs are disappearing.
1:03.3	Number two, how to do disaster planning and calculate your burn rate with regards to your
1:08.1	real estate portfolio.
1:09.9	Number three is avoiding a real estate apocalypse amidst incredible economic uncertainty.
1:16.7	Four is how to keep the money flowing.
1:18.9	Your financing options beyond a traditional bank.
1:22.2	Number five, what should new and aspiring real estate investors be watching for in current
1:26.3	times?
1:27.3	We're going to cover that in more, but before we do, we'll be right back.
1:34.3	It's interesting, there's really no free pass right now.
1:37.4	There's very few safe harbours when it comes to sources of investment.
	...

Please login to see the full transcript.

Previous episode | Next episode

Disclaimer: The podcast and artwork embedded on this page are from Jonathan Mendonsa & Brad Barrett | Choose FI Media, Inc, and are the property of its owner and not affiliated with or endorsed by Tapesearch.

Generated transcripts are the property of Jonathan Mendonsa & Brad Barrett | Choose FI Media, Inc and are distributed freely under the Fair Use doctrine. Transcripts generated by Tapesearch are not guaranteed to be accurate.