Three Disciplines

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Apr

12

Three Disciplines

During the recession of 1990 to 1995 I, like almost all of us in the business, suffered significant financial challenges.  Many of my tenants closed their business or were not able to continue to pay the agreed upon rent.  Also, it was nearly impossible to replace loans coming due as the financial markets were imploding.

Three of the disciplines of my real estate investment strategy most meaningfully impacted my ability to work through these extremely difficult times.

Quality Properties, Non Recourse Low Leverage Financing, Reputation.  I had previously built a portfolio of very high quality properties which were less impacted by the recession than lower quality properties.  I maintained reasonable liquidity, and I had credit and personal relationships that allowed me to find interim financing.

These strategies served me well for more than forty years, and I encourage you to adopt them.