30Mar, 2024
    Investors Look Back to Look Forward – Is this a revisit of 2008?

    When I look at the state of affairs in today’s economy, I am quickly reminded about the Great Recession in 2008 and subsequent years. It was an impactful time for me personally. I had just left my high paying corporate job to be in commercial real estate full time. I remember thinking, ut oh….what did I just do? You see, even though I had been in real estate almost all of my life, as a newbie in the commercial industry fulltime, I had to learn a thing or two. I went from commercial real estate agent to commercial real estate therapist. I listened to investors who lost everything including $80m in one day, to the boats, cars, houses, wife kids and even the dog moved out. More importantly, I listened, I observed and I learned what not to do. I asked questions from veterans in the industry, what is your strategy to get through the awful financial time? Here’s a culmination of what I learned.

    1. Diversification is Key: One of the most significant lessons from 2008 is the importance of diversifying investment portfolios. Relying solely on one market or property type can expose investors to heightened risks during a downturn. Spreading investments across different assets and locations can act as a safety net during economic upheaval.
    2. Avoid Overleveraging: The 2008 recession demonstrated the dangers of excessive borrowing and leverage. Maintaining a reasonable debt-to-equity ratio helps investors weather the storm during economic downturns, preventing foreclosure risks and financial strain.
    3. Research Market Fundamentals: Understanding the local market dynamics is crucial for making informed investment decisions. Pay attention to factors such as job growth, population trends, and infrastructure development, as these elements can impact property demand and rental income stability.
    4. Prepare for Volatile Markets: Recessions often lead to volatile markets. Being prepared for fluctuations in property values and rental rates enables investors to react swiftly and adjust strategies to minimize potential losses.
    5. Cash Reserves are Lifelines: Maintaining sufficient cash reserves acts as a buffer during challenging times. Having readily available funds allows investors to cover operating costs, mortgage payments, and take advantage of new opportunities that may arise amidst the downturn.
    6. Long-term Vision Trumps Short-term Gains: During periods of economic uncertainty, it’s crucial to adopt a long-term investment perspective. Avoid speculative investments driven solely by short-term gains and focus on properties with stable income potential and enduring value.
    7. Adaptability and Flexibility: In times of recession, markets shift, and investor preferences change. The ability to adapt and be flexible with investment strategies is crucial to surviving and thriving in a changing economic landscape.
    8. Analyze and Stress Test Investments: Before committing to a real estate investment, thoroughly analyze the property’s financials and stress test them against different economic scenarios. This process can help identify potential vulnerabilities and allow for appropriate risk mitigation measures.
    9. Consider Contrarian Investing: Opportunities often emerge during economic downturns, and contrarian investing involves going against the prevailing market sentiment. Identifying undervalued properties with strong growth potential can lead to substantial returns when the market rebounds.
    10. Learn from Past Mistakes: Lastly, one of the most valuable lessons from 2008 recession is to learn from past mistakes. Analyze what went wrong during the downturn, both on a macroeconomic level and in individual investment decisions. This retrospective evaluation can help investors refine their strategies and build resilience for the future.

    While we know that this is not a repeat of 2008, this economic downturn will The upcoming recession may present challenges for real estate investors, but it also offers valuable opportunities for growth and learning. By reflecting on the lessons from the 2008 crisis and applying them to today’s market, investors can position themselves to make informed and prudent decisions. Remember, knowledge, adaptability, and careful planning are the cornerstones of recession-proof real estate investing.

    These are lessons from 2008 that my clients learned and I learned through them. As always, we are here to answer your specific questions and help provide a guide when it feels like things are going sideways. Call us at 813-995-9595. We got your back.

    3Feb, 2023
    Worries of Stagflation??

    Worries of Stagflation? We already know there is inflation. But are we seeing signs of the dreaded stagflation in the economy? Who knows, only a picture in the rear view mirror can tell us. But regardless of the terms we use, businesses are experiencing some turbulent and uncertain times. We are handing you the keys that might help your navigate these challenging times.

    We anticipate that for an extended period, revenue may flatline while costs keep increasing. If you have exhausted the cushion you had set aside, it is time to take some other strategic measures to preserve the cashflow.

    worries of stagflation work smarter no harder

    KEY #1 – Keep the cost of debt to a minimum. And if interest rates are rising, consider replacing any variable interest rates loans with fixed rate interest payments. The fixed rates may feel high now, but if the Feds launch into drastic action, you will be prepared. Conversely, when the interest rates fall again, you can refinance at the lower rates.

    KEY #2 – Become a landlord. During stagflation, rents may increase and your business’s revenue might not. If you have extra cash available, consider buying the building in which your business operates, then rent the other half of the building to other tenants. Of course, purchase wisely. There are very friendly loans available to support purchasing commercial real estate for occupancy and rentals. So explore all of your options.

    KEY #3 – Be opportunistic about acquisitions. Companies that are going out of business or need to raise cash may sell property or equipment at below market prices. Consider acquiring commercial property, equipment, assets, brand lines or staff with needed skills to augment the business you are operating.

    Likewise, consider merging/acquiring a competitor, buying a channel, or manufacturing your product in-house if doing so allows both companies to reduce overhead, expand into new markets or offer an expanded array of products or services.

    KEY #4 – Augment staff with technology. Embrace automation in your business can supplement the staff and allow people to do more with less. If you have been resistant to incorporating technology into your daily business routine, you may be missing one of the biggest opportunities for growth in your company and for your staff. Technology can enhance your product output as well as offer a better customer experience. Should you higher staff person, or should you invest in technology that helps everyone grow. Business loans are available to expand your business technology needs and help your business be more cashflow positive.

    This is the time to think strategically and put the sound principles into action. This year will be another year of change to stay alive, or you can make it a year of change and leverage the opportunities coming available. Ultimately, its these times that help us grow and expand into places we did not even know existed. Protect the cashflow, manage the cash, and leverage debt where possible.

    We are here to find the strategies and the loans that help propel your business forward.

    Business Owner
    3Jan, 2023
    Who should be on my team in 2023?
    who should be on my team

    Who should be on my team in 2023?

    There’s no time like the beginning of the year to complete a thorough assessment of your business activities.  Where have we been? Where are we now? and Where are we going? Most good business owners take the time to at least think about what the year will bring. And in the wake of uncertainty of the upcoming year given inflation, increasing interest rates, the war overseas, and political turmoil, one of those line item tasks should include asking:

    Who do I put on my team professionally?

    Take an assessment of the professionals around you. Your attorney, your cpa, your banker, your technology person. Yes, you’ve worked with them for years, but are they serving the purpose you need them to right now? Certainly, you do not want to be in a quandary and then have limited options to choose from. The best time to explore your options is when you are not under a stressful situation.

    Who should be on my team in 2023?

    The obvious as stated above, but is that all the key management players I need to achieve my big impossible goals this year? Who else should I consider to help my teams perform? More importantly, who are bringing good ideas to the table that lets me choose the next steps for our business? Or takes my business into a new direction?

    Think you have it under control? Think again! The world of finance is changing rapidly.  You do not have the time nor probably the desire to keep up with the latest and greatest growing financing trends, but there is nothing wrong with exploring some tried-and-true methods and incorporate some well-worn paths to grow your business.

    As I have said many times before, cashflow is king. Protecting your business cashflow is the secret to your business success. I can guarantee, that none of those professionals can advise you on protecting your cashflow. They can only speak to managing your money, not generating it. Which is actually different than managing your cashflow.  Not having cash-on-hand to make payroll or pay your bills is one of those things that will keep you up at night. Not being prepared for a surprise negative cashflow situation, will take you out of business in an instant.

    Of course, turning to the banks, when you need the money; they cannot lend it to you when you are in an adverse financial position. We are already witnessing the banks tightening lending criteria and standards. And if you remember in 2008 crisis, the banks were not your friend. They were often the source of the problem. I am not saying this is 2008 all over again. The current situation is very different and there are some strong fundamentals at play. However, there are some similarities that are worth paying attention to. How does the saying go? The banks only lend money when you don’t need it. There is some truth to that.

    And if you find yourself in a quandary, predatory lenders are waiting behind the scenes to scoop up on the opportunity. This is a position you want to avoid. So, if you are planning for a business-as-usual kind of year during your assessment, you may miss the mark. Lets be honest, this is a “Take Action” kind of year, not a wait and see how it goes kind of year. The smart people will make decisive plans and act early in the cycle. They will expand their tolerance limits and plan for the low cashflow possibilities. And they will surround themselves with talented people who can bring creative ideas to the table when navigating a difficult year. You will be brilliant!

    At Business Loan Solutions, we are dedicated to your business success. We understand the importance of cashflow in your business and we strive to find the right solutions to keep operations running smoothly, even in this uncertain time. If the saying goes, the banks only lend money when you don’t need it is true, then the opposite is true too.  While your business is going well, look for solutions that work for you. Consider a working capital loan or a line of credit as a back up plan. Consider consolidating your loans, especially if you have a long-term loan coming due this year. Take advantage of equipment leasing or invoice factoring to diversify your cashflow possibilities. Or even investigate an SBA loan to expand your business. We have many levers to pull in your favor and we can help you plan this year’s cashflow strategy.  

    So as we head into an uncertain economic year, who do you want on your team?

    16May, 2018
    Have you been declined for financing?

    If you have been turned down for a loan from your bank, do not take it personally.

    The fact is only 8% of small businesses actually qualify for conventional financing from their bank regardless of a good working relationship with your banker.

    There is no need to worry though. Business Loan Solutions has over a 90% approval rate for loan starting at $500,000 and up.

    We have several products. Term loans, line of credit, SBA loans, and more.

    We have a simple one page loan application, and only limited documentation to qualify.

    There are no application fees, and flexible terms.

    Contact us today to bring your business to the next level.

    If you really want to make your business zoooooommmmm….call us about equity investing and wealth generation strategies.

    Call us today! 877-741-9215