#163 4 Ways To Help You Survive a Recession

Hey, everyone. Today we're going to talk about the things that you need to think about to not only survive, but thrive in a recession. So stay tuned. Welcome to the Passive Income MD Podcast, where we talk about creating your ideal life through multiple streams of income. If you enjoy hearing about this stuff, make sure to hit subscribe. Now, let's get on with the show. All right, so I don't know how many of you have been watching the news lately or listening to it or actually seeing these different headlines pop up. But. But a lot of it is not good right now. There's a lot of talk about debt ceiling, and now the negotiations may have been completed, but issues with inflation, interest rates, and I don't know if anybody has seen that recent Wall street article about some issues with some apartment buildings and some syndications. I've also seen some things about the SEC and different types of investments, so none of it seems to be good. So how are you thinking about things right now? I'm thinking that most people right now are responding to a lot of those headlines with fear. Now, now, why do most of us have fear in a type of situation like this? It's because of uncertainty. We don't know what's going to happen and how to set ourselves up for future success. However, it's been shown again and again throughout history that in times like this, where there are recessions, depressions, when things seem like they're falling apart, if you could actually have the right mindset, get yourself set up and have the right systems in place to take advantage of this time, you're going to actually win out. In fact, many people look, look for times like this and not only approach this with fear, but with a ton of excitement and optimism. I think some of that comes with experience. You've done it before and you're going to do it again. But I believe our community, we can do better than that. We don't need to respond with fear, hide our money in our mattresses. And so we're going to talk about some of the things you need to think about and actually plan for to do well in this recession. Number one, you have to recognize where we are. We're in a recession or very, very close to it. I know people use GDP or they use different markers 2/4 in a row to figure out whether we're in a true recession or whether we're moving towards that way doesn't matter. I would say for all of us that are listening to this right now, whenever this thing is being recorded, we're talking about this, we're in a recession, meaning that things are on the downslope. I don't think we're at the bottom yet. We're not even close to it. But things are moving in that direction now. I'm not a doom and gloom type guy. However, I do recognize that it's important to be realistic to see where we're at in what time we're at so that we can come up with a plan to be able to look at this moment, to see what's happened in history before so that it helps take out some of the uncertainty around this time so we don't have to approach this thing with fear. And this fear can easily overtake you. It's hard to escape it. You hear it in the news articles out there, conversations with your neighbors, your friends, your colleagues. And unfortunately, when you focus and your mindset is in that state of fear, unfortunately, you don't see solutions, you don't see ideas, you don't see ways to create more opportunities for you in the future. Hey everyone, thanks for tuning in to the PIMD podcast where we try to educate and and we connect you to the best resources possible to help you get where you want to be. Today's episode is sponsored by DLP Capital. Now, if you didn't already, DLP stands for Dream, Live and Prosper. 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And we're in a time right now where people are holding up, the weather is cold, and people are just kind of bundling up, hoping just to survive. But for many other people out there, winter is a time where they really enjoy it. I don't know if anybody else is listening out there where you think, think winter is your favorite season. For some people, it is the worst season. For other people, they love that season because they can ski, they love winter sports, they have a great time with their family, and they have great experiences during winter. Christmas is during winter, or whatever holiday that you practice is during winter. And so a lot of people see winter with a lot of optimism. Now, I grew up on the east coast and we did a lot of winter sports. But I also think of winter as a time where I would have to get out there shoveling. And it was a time of a lot of work and a lot of cold, and I couldn't enjoy a lot of the summer stuff that I enjoy doing. Now I live in Southern California, so you don't really have a lot of those seasons. But winter is a time where a lot of people can see as a time where they can take advantage of the opportunities that are there. When other people are fearful, when other people are kind of bundling up, you know, they're scared. That's when a lot of different things happen. In the economy. This is when you're going to hear a lot about things being distressed. You're going to hear about real estate being distressed. You think you hear about companies being distressed. Right now, credit is freezing up, meaning if people weren't preparing for this time, free money is not floating around. So companies, real estate, syndications, your own portfolio might be suffering a bit. But again, because of that distress, prices and where you can get in, in terms of deals and opportunities tend to reflect that. And you're going to see those prices come down and they're already happening. I'm seeing it in some of the deals that I'm actually Getting involved in where a 20 to 25, 30% haircut is possible. So many of us have set ourselves up for this type of opportunity where we prepared ourselves, educated ourselves, and we're ready for this. So that's where you have to start. See this as an opportunity. See this as winter. See this as a time where many people will be fearful. But there are so many different opportunities that will come about during this time. Next, you have to absolutely understand where your cash flow is. Cash is king. You've probably heard about that. Meaning that access to capital to either make investments or to keep your own investments afloat are absolutely important. This is when jobs tend to typically shrink. Pay typically shrinks as well and goes down. Investments start not putting off enough money, or a lot of them that are shaky tend to fall apart. So do you know where your cash flow is today, where it's coming from? Is it just from your job? And if so, is your job stable? I will say during the last quick recession period, during the pandemic, a lot of people had to take 30% haircuts or they take a furlough. How about you? How did it happen for you? Is your work situation as steady as you think it is? That's probably the first thing that everyone needs to do. Look at your job situation. What if you're patient load? If you have a private practice? What if the economy continues to go, go down? Do you do things mostly on an elective basis? Would that shrink and would you be able to sustain that from a business standpoint and from your own supporting your own family and your own lifestyle? Next, look at your investments. Are they going to continue to spit off cash flow for you this point? Are they going to continue to do well? Do they need more cash from you at this point for you to deal with that? Are you ready to prepare for that? Do you need more access to more credit? Do some of these investments need to refinance? Are you going to be able to have access to that? It's really important to know where all of your liquidity is. Where do you have access to cash if you need it? Is some in your retirement accounts? Do you have certain investments you can sell off? Are they in stocks or they in a portfolio where you could sell off if necessary? Or are they in certain funds where you could call them or redeem some of that money if you absolutely needed to? Where's all your cash flow? Where's all your liquidity? Where could you pull from in a pinch? It's not like you want to take everything and put it in cash. You want to have some in places where it's cash. You want to have in places where you have access to that cash. You also want to have access to some credit if necessary, or home equity loans, HELOCs, whatever that might be. Where do you have access to all of that cash and where are you liquid? And it's absolutely important for you to know all of that because investment opportunities will come and so where are you going to get the capital for that? Where are you going to get the investment money to get into those opportunities that no doubt come during this time? All this leads to my next point which is what is your network look like right now? Who are you connected to? Who is finding opportunities? Who has the right mindset to survive during this time and also thrive during this time? Who has been there before? Who has done well in these times? And who are those people that you can connect with that can help in terms of knowledge, experience, confidence during this time? What community are you part of? A community that stays in the know, meaning that they're constantly learning and educating themselves. A community that also plans for the future, that are like minded, like you and that are just going to hold up during this period. How about a community that encourages you, that is open to discussion about different opportunities and ideas. They may not agree with everything, but you could talk freely there without judgment about how to thrive during this time. And then ultimately a community that has the education, has the resources, has the possibilities. Where can you find a community like that? By the way, a quick plug. If you're not already registered for a conference this fall, pimdcon, the Physician Real Estate and Entrepreneurship Conference. There's an amazing community there. We've already had so many people sign up, in fact more, more than all last year combined already have signed up for this conference. So we're looking forward to meeting so many people in person and virtual. If you can't make it, that's pimdcon.com, we'd love to see you there. Check it out. And finally, to thrive during this time, recognize that there are no guarantees on any of these markets or deals. No matter what anybody promises or tells you about, there's no risk in this. I'll let you know. There is risk in every single deal right now. However, if you can identify the risk that you can deal with, the risk that will actually outlast this whole recession, those are the ones that will do well. So personally, when I'm looking at deals right now, I'm asking everyone, what is the story how are you prepared for this time? How will it perform not only the next 18 to 24 months, but how will it perform if it outlasts that in three to five years? How are you mitigating the risk to set yourselves up during this time? And how can I benefit as an investor? I need that great story from everyone. That's part of my due diligence and every single investment that I look at today. But I will tell you, the only thing you can guarantee right now is how you show up during this moment, how you prepare for it mentally, how you set up that community, how you set up that cash flow that we talked about that is under your control. And so my encouragement to everyone is to make sure those things are set up and ready, because those are the things you can do to prepare yourself for this period right now. So have you checked all of those things out? Is that something that you thought about? If not, this is the time to get those things ready. We're here to support and connect you if necessary. We whatever we can do to support you during this time. I feel our community more than ever needs to be stronger and connected to each other. And we'll all do well through this period and through this time. Even though it's a little challenging out there. Winter is something that we don't need to fear, but it's something that we can really see as a beautiful time to set ourselves up for the future. As always, hopefully you got something out of that and we're here to support you, whatever you might need. Thanks so much. Take care. Hey, everyone. I'm excited to tell you about PIMDCON, the Physician Real Estate and Entrepreneurship Conference happening on September 21st through 23rd. This year, as always, we're bringing together some of the smartest minds in real estate, investing and entrepreneurship to speak at this event. Now, what sets this conference apart from others goes way beyond the speakers. It's being part of the community that's created at our live events. Now, this year, we're offering specific tracks focused on real estate investing or entrepreneurship acceleration so you can customize your experience and focus on what matters to you the most. Now, our expert speakers, coaches and workshops. They're going to help you gain the knowledge and confidence you need to take your next steps forward and towards achieving financial success and independence way beyond medicine. And it's not just about the information you're going to learn from the speakers. It's about the conversations you'll have with other attendees that I know will spark new ideas, inspire you to take action so every year people leave PIM Nikon and they launch their real estate investing careers while others grow their portfolio in exponential ways in ways you wouldn't have even imagined. Now this year is going to be no different as you leverage your big ideas to expand your vision for what's possible. So join us in person in Los Angeles on September 21st through 23rd. There's also a virtual option available for those who can come live, so don't miss out on this opportunity to connect with a community of like minded individuals and gain practical skills and knowledge to help you achieve your financial goals. Save that date September 21st to 23rd 2023. I'll see you there. Thanks everyone. By.