#amazonfbareturns

Taking Advantage of A Downturn

The experts have been and I'm talking about these guys that are you know, hey, give me 500,000. Let me invest it, let me short it for you. They lost money five years in a row because they kept thinking this was the year, the depression is coming. This is before covid. And I know good people that are like, you can't go seven years, I've looked at history. It only goes seven years. The longest, you know, non-recession has been nine years. Now we've gone 10, 11 years without a recession. So for anyone that is over 40 years old, that has some understanding of the economy, realize that it goes up and down and I knew and at least I felt like I knew when the housing prices were outbidding each other, it felt a lot like Los Angeles in 2005 when everybody that was a waiter and actually could walk in with a 550 credit score and get a million dollar house and I'm like, there's something not okay about this. And I know that the fundamentals are different than 2008. 

Of course, from the crash I understand all that. But when other people like the bitcoin and the real estate when average non-sophisticated buyers are rushing into a market like the Dutch daisies or the Dutch flight, I'm always like, okay, something we're at the top of this thing not about you because you're also a real estate investor like me. But at some point in the last year and a half, I was like, man, I'm out unless I find a great deal. Like I'm just going to wait till  it on sale. That's how you handle a recession and I'm no Warren Buffett, but you know he actually admitted, hey, for the last 12 months, we've been stiff, we've been tucking away money. 

We've been tucking away cash because that seems like the best way to prepare for a drop in value. And what happened in the last six weeks has recorded. This is people got scared, the stock did drop, tech drop, bitcoin drop. So people then say, holy christ, I don't have a lot of cash and now I need the cash back so where you need the cash from? The only liquid assets are stocks and bitcoin and you can't liquidate a house instantly. So I'm not scared. I kind of expected it but if you're not in a position to either have cash, look at it because now you know the credit's dried up. So there's no more easy dumb money to buy those things that are now on sale. But if you're a real estate investor in the next three years, that's going to be the best time to buy. 

Think about all the people in the last three years. That over leveraged bought 10 airbnbs because money was cheap. And now they're like I'm going to be in business and now they're like, oh no, I got to sell one or two a year I know that. So there's going to be things on sale and just like anybody who's ever gone to  Walgreens or on amazon, we like on sale. It makes us happy. Why would you buy anything retail if you can get it on sale at the same product? That's how you have to look at a recession is things are now on sale. And do you have the money or the credit or the relationships to create? Now a bigger asset pile and hang on to it for the next four to seven years? Is that fair and the way to look at it? 

Business Success Using Shaahin's KCA Method

Three things that you need - knowledge courage and action. Knowledge you can buy, you can borrow, you can steal, you can rent, right? Maybe better not to steal it but you can rent it. You can hire people and that's what I did. I picked up the phone. The first phone call I made was to Andrew Wilde, the great naturopath, the guy who wrote all the textbooks, who's like now you know he's got a TV show. He's got books you know keynote speaker whatever and I said, hey I want to make this herbal version of ecstasy. Can you help me and he said yeah sure and he gave me contacts and told me about herbs and then I went down to Chinatown. I found some herbalists and I said, hey I don't have any money but I know herbs don't cost very much. Can you front me some herbs? They said, sure and you know everything started coming together so that's knowledge. I borrowed it, I rented it, I bought it whatever to figure out what I'm doing. I knew nothing about doing that stuff. I was just making it up as I went along and we tried so many different formulas. It started off as like five bags of like these round goo balls like gumballs that you had to like pop down and it worked. I mean got you really high but it tasted nasty and most people got a stomach ache and then we finally got it down and we got rid of the stomach ache and we got it into capsules and you had to eat 20 capsules and then finally after a couple years we got it down to five small pills and you could choose  - you could take one or you could choose five depending on where you wanted to be in life and so that's knowledge, right? 

But when you have the knowledge that gives you the courage. If we don't know stuff then it's hard for us to move in life. If you don't know what you're gonna do when the client says yes you're like holy, but if you know you're going to walk up to that door in your business in the real estate business and you say hey I can get you top dollar for this house and they say yes and you're like great. This is what I'm going to do. I'm going to list it on the MLS. I'm going to advertise in this. I'm going to make it a pocket list. You've got that knowledge that gives you courage, that gives you balls, that gives you cajones, right? 

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