“Those who remain calm in the eye of the storm are those who stand tall when the smoke clears.” — Myself.
“The time to buy is when there’s blood in the streets.” — Not myself, but Baron Rothschild.
Yes, it’s all over the news. It’s here so we might as well make the best of it. And the best part of all?
It’s the best time to be a resourceful entrepreneur. Like the good Baron says, when there’s blood in the streets, is the time to get down.
I wrote a story awhile ago on BiggerPockets, based on a coffee chat with super entrepreneur Neil Patel, basically outlining why mass scares are gold rushes.
Here are three ways this “COVID-19 pandemic” are creating mass opportunities to get ahead in the game. Especially as it pertains to real estate (which never will go out of style), stocks, and just opportunity, period.
1. Stocks are plunging for no other reason than panic
The world is pausing right now. Shutdowns everywhere. Stocks, with solid fundamentals, are plunging into the abyss with no end in sight.
Per the New York Times, the airline industry alone is seeking more than $50B in grants, loans and tax relief from Washington.
So what does that mean? Well, it means that you can pick up stocks for pennies on the dollar. And when the dust settles and life goes back to normal (trust me, it will), you will have INSTANT gains.
If you’re looking for a place to look, CNBC’s stock expert Jim Cramer picked out 10 strong tech stocks to look into (Shopify and Square were two; not bad ideas) where the fundamentals are robust but value plunged for no other reason than…you know.
2. Interest rates just dropped to (near) zero…
In Europe, negative interest rates have been a thing for quite a while with outrageous mortgage rates in the 0.5% range.
Now, because of all this chaos, the Federal Reserve took emergency action, cutting interest rates suddenly and dramatically to close to 0%.
The move was done in a reactive attempt to try to offset the impact of the coronavirus outbreak and stimulate some spending action.
So what does that mean? Well, it means that if you own real estate, assets, anything, you can refinance and cash out.
In even more layman’s terms. If you have a mortgage at 4%. Cut that bad boy to whatever low ish they’ll give you, save that extra.
Or even better, refinance your property. Let’s say you owe $300K on your $500K property. With interest rates down, refi at $350K, pocket the $50K and launch your business idea.
(And don’t forget about all the tax benefits that await on the other side.)
3. People are going to get tired of each other
According to Forbes, divorce rates go up when the economy goes down, with economic uncertainty putting a strain on once-happy homes.
These quarantines are forcing people to be with their spouses, which leads to either one of two things: family additions or family reductions.
“Scary times have the potential to drive people together or apart,” Pepper Schwartz, a psychology professor at the University of Washington, told Quartz in an email.
And when couples split, the assets have to be divided evenly, opening up opportunities for shrewd investors.
See where I’m going with this? Yes, we must prepare for the strain. But also prepare for the opportunity.
4. People are sitting at home, BORED
So what does this mean? Well, it means that no sports are on, no entertainment options, reducing attention to Netflix and social media.
That also means that NOW is the perfect time to start blogging, posting stuff on social, testing out your new business idea. Launch a #corona drop-shipping clothing line on Shopify.
Whatever it is, hit ‘em with the Nike (#justdoit) and do something. The majority of people are at home going crazy, trying to figure out what to do.
Take advantage. And let’s face it. Do you really want to be this exposed to a crisis in the future? If you have your own business, you wouldn’t have to worry about your job shutting down…