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howdy welcome back to dion talk in this video i want to cover as investors what are we doing to prepare for the coming hurricane on one rental at a time the three amigos did a video talking about how we would talk to a relative or a friend who wasn't an investor and how they're going to best prepare for all the chaos that's happening this year so what i want to do today is have the three of us cover what we've done and what we're doing differently if we are to prepare for what's coming so let's start with the lumberjack landlord matt what have you done to prepare for a hurricane uh i spent the last year refinancing as many properties as i could to a level of 70 the reason i picked that number was because it left me enough equity if there's a 20 correction in the market and i need to pay fees to sell it i wouldn't have to write a check to get rid of a property if for some reason i had to but i did that with 23 of our properties so that's what i did to help that's one of the things that i did to prepare for this coming hurricane i like it so you did that to prepare for opportunities that are coming on top of double value which is hey if the market does crash like some people were talking i'm ready if the market doesn't crash i'm still ready so the it's always always always always capitalization is key especially when you're growing a business being capitalized is he because the one time that you have something go sideways on you and you're not properly capitalized you are either borrowing debt at a tremendous rate or it puts you out of business or you sell off at a much much lower valuation where that person might have to write the check to lose an asset right correct and mike what have you done to be prepared for the hurricane that's coming yeah so if you guys have been watching our channels you know that i've done the same thing as matt so not to kind of double down on that what i would tell you right now is i have changed how i look for opportunities this is this is important right because i have invested through a changing market a couple of times and you know i've had four or five really huge pivots this is the fit and i am i am so excited dion i will not pay list price for anything going forward i will seek terms i am actually looking to add skill sets i have been doing this for 22 years and i am looking to add skill sets for example uh today with the day we're recording this i have somebody that's adding pre-foreclosure content to our bonus to our course which you guys are a part of it goes out at seven o'clock this evening um why is that important well i think foreclosures are going to go up right they have to right there 152 000 last year they're gonna go up five six seven hundred percent however the opportunity is not in foreclosures folks it's in pre-foreclosures it's in people that because foreclosure process is a long time so in short i'm looking to add more tools i'm looking to do more deals i'm looking to get seller financing uh i'm looking to deploy less capital and get better deals i'm no longer looking at first day listings and looking at speeds i have deleted all of my first day listings i do not care i do not want to get if it's if it goes first day not my thing i'm looking at 15 days and i promise you and a month or two months from now i won't even look at 15 days i will be looking at 30 days i will only buy from motivated sellers i will never pay list price again and my deals this year will be better than last by a lot so uh i'm getting ready by changing how i am buying stuff to prepare for the coming hurricane in some way i feel vindicated because that's how i've been investing one of the things i like to do is instead of having a 10 unit apartment complex i would prefer to have five duplexes that were all more than 10 miles apart all close to different economic drivers so in our area if the port closes down or the base closes down or the hospital shuts down or boeing or amazon moves away that's one of the drivers in the area three or four cascading things would have to happen to impact my rental portfolio because i keep my units spread out so while you're investing that might be something to consider is how many economic drivers are close to where your properties are so that you know you have more than one source of tenants especially during a time like a recession where we could see layoffs or a military downsizing the second thing i do is i diversify my tenant base i i like to keep about one third military one-third section eight one-third working or retired so that a prolonged government shutdown pandemic which we'll probably never see in our lives a stock market crash isn't really going to impact my entire portfolio so i have two different tiers of of strategies that i use to protect my portfolio for this hurricane which might never have come i could have had more units i could have been more aggressive i could have quit working with less cash flow it's i still don't have 10 mortgages in my name so it's very easy to get those while you still have a w-2 so i want to add another couple properties before i stop working someday i'm definitely going to stop working i've told my company owners that it's probably about three years is the maximum or tomorrow it's somewhere between there so sometime between three years from now and tomorrow i am going to quit my job but not today so matt that new investor that has two or three properties because that's a lot of our audience is the person who is ready to jump in and take their first property or take down their second or third what do you think they should do different in the next year um focus on recapitalization make sure that you have saved up enough money i mean i did a little uh quick but crude graph you can't really see it that well maybe i can get it no forget it that's a horrible idea anyway long story short is what that graph basically said was you know interest rates used to be here pricing used to be here now interest rates are here and everybody thought that this would go this way it's not it's still here so what you need to be doing is making sure that the assets that you have are protected it's kind of going into a little bit of a different phase of your investing career different because when you see so one of the things i'm a hockey player i like to play hockey what i would do sometimes isn't considered hockey but what you should do is you take what the defense gives you i would sit there on the bench and i would yell at people and be like why do you keep on going down the center the two the two defensemen keep on going this way on you around dump it in around take what the defense is giving you if you keep on trying to assert your will on the defense it's like fighting the fed fighting the tape you're gonna lose be well capitalized make sure you're in position to afford your job loss your wife's job loss your partner's job loss whatever that looks like and that you can maintain the properties and if your rents change one of the points that dion mentioned that he glossed over which i didn't think he spent nearly enough time on is diversification of tenant base in the last 12 months one of the most important things i did for my entire portfolio my entire portfolio is now 25 government housing it was zero last year zero so i didn't feel the need to do it last year or two years ago because i said you know what i'm still growing we're still doing a lot of stuff at market then when i started looking at it dion's well diversified mike's well diversified i think mike's about 25 dion's about 35 that's what i started doing with my portfolio is saying i want 25 at least with that with with some sort of government housing and actually thankfully we have a shipyard which is government run and owned uh by us and so i actually started posting there and talking to tenants that were there and grown that that's about probably ten percent of my portfolio now so now i have 35 total percent of my portfolio that is not free market that is more guys that largely during government shutdowns and things like that they were still working based on the math when all those pay i actually can cover my nut and so i think that as a small landlord you need to make sure it's not a massive diversification if you own three or four units it's literally getting one tenant just one and there's a long long waiting list of tenants on those lists that need housing and the really great thing about that diversification into to section 8 is my section 8 tenants have an 831 credit score and a 790 credit score fixed income not low income and even during the government shutdown that lasted over 60 days section 8 kept paying so while we're preparing and making that that's the one time it might be a negative it didn't happen mike any final thoughts and if anybody has questions to reach out how can they get a hold of you yeah a couple of final thoughts for me is hurricanes happen um you know whether it's a hurricane or a bad storm they happen they're not quite repeatable but you can count on them happening in the future i would tell you it's it's important to prepare which this has been a lot about preparing but if you don't take advantage you don't find that one asset bought on sale it's a wasted opportunity for me recessions storms hurricanes are a about surviving absolutely which this has been about but when they end if you haven't gotten something on sell you've missed your opportunity so we talk about this all the time one rental at a time is my youtube channel is a channel about building wealth and a lot of wealth is built by taking advantage of hurricanes and recessions and bear markets so go check me out one rental at a time and we go live saturday at 8 a.m awesome and everybody i believe if they if they can't watch all of your content they should pick the your guests that they resonate with the most check them out and your daily updates are a lifesaver the work that you put into those is much appreciated i watch every single one and matt if somebody wants to reach out with questions how can they find you lumberjack landlord on youtube and instagram also 11 30 am eastern time we do our live stream i can't go three hours anymore i don't know how you ever did i'm tired dude one hour just done oh i can't i'd only get through the hellos mike i'm thinking that's an adjustment we need to make we need to say hello to all the hellos like once and then just screech through for questions like put q or something at the beginning which is good that means our live streams are growing to the point where that's the challenge until our next video thanks for coming to our three amigos talk we're sorry the number you have dialed is not in service at this time and matt i'm really glad you made the hockey reference because uh my son watches hockey all the time he goes to hockey here all the time and i i i don't watch hockey so i need to ask somebody like you who actually knows it and understands it why does the away team have so many different uniforms
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