Episode Transcript:  

  Recession. It is a huge topic that has a lot of serious big players talking. Jamie Dimon was asked just a few weeks ago what his opinion was on the matter, and he basically said he doesn't know. He doesn't know whether we're already in one or if we're headed to one. And a lot of other big names agree with him, like Ray Dalio, Lloyd Blank, fine, Larry Fink and Mark Zady.

So all these major players are obviously concerned about recession. Everyone is talking about it, and there's a ton of uncertainty. But do you think that any of those people have stopped making investment decisions? Of course not, and neither have everyday investors. And I'm gonna explain why on today's episode.

Let's get REady2Scale.

Hey guys, my name is Jeannette Friedrich. I'm the director of Investor Relations here at Blue Lake Capital, where we specialize in multi-family investments across the us. Now, because of my position, I have the opportunity to speak with hundreds of investors, and from those conversations and from getting to work with them and partner alongside them, I learn a ton.

So how do the rich make investment decisions, even when there's uncertainty about recession and everything else that you can think of? It's actually pretty simple. So what I have observed to be very true that really sets those that are disciplined, successful, and wealthy, apart from those that are not, is being able to frankly stick to the plan.

So what I mean by this is there's basically five factors that I have. Served that are true across the board, whether we're talking major players or your everyday investor. First of all, it's that people know their why. They have a plan. They are trying to accomplish something, and it doesn't matter where we are in the market cycles.

It doesn't matter what's happening in the economy. They are not going to be detoured from accomplishing their goals. I think there's a lot of merit. To remembering that lesson and implementing it in your own life, there's always gonna be a reason to be afraid. There's always gonna be a reason to say no to something when you should say yes to something or maybe to say yes to something when you should have said no.

But either way, the reality is that you can't let exterior circumstances and all this static make you freeze or become distracted from what it is that you're trying to accomplish. Knowing your why is everything. Alright. Number two, what people also do is they stay focused on the fundamentals. They are looking at things like supply and demand, and does a deal simply make sense?

So when it comes to multi-family housing, it's extremely popular for one main reason. Everybody needs somewhere to live. On top of that, we know there is a significant housing shortage in the United States. On top of that, we know that it's very hard for people to be able to afford to buy a home, and that we are essentially becoming a nation of renters.

People know the fundamentals, and if the fundamentals are strong, then it makes sense to still continue to look at investment options. Even when there's uncertainty, that uncertainty is not going to change the fundamentals, and therefore people have a sense of confidence in being able to move forward in making investment decisions regardless of the static and the noise in the rest of the environment.

Now, the third thing is that street cred matters. So what I mean by this is that people actually care very much about who they partner with and they trust the people that they partner with. That is critical. People don't go into investment decisions thinking, I don't trust this guy, but hey, I'll give it a whirl.

Nobody does that. So it's really important that you are evaluating who you are, partnering with, how confident you are in their ability to deliver, and rather not you believe them to be transparent. And truthful partnerships matter and street credibility matters. So make sure that you're doing your due diligence with whomever you're going to partner with.

Make sure that you ask to speak with their current investors. Ask them about the deals they have that have gone horrific or wrong, and see how honest they are with you in their answers about that. Google them. Nowadays, you can find out a ton of information simply by Googling about someone. So I highly encourage you to make sure that you're doing your due diligence when you're getting into an investment and being very confident and thorough about making decisions, who you're going to partner with.

Now, the fourth thing that I have noticed for sure that all of these successful people do is they look at things 360. So they don't just look at this decision and think, oh, you know, is this yes, you know or no about this particular decision. They are looking at something. Full circle 360 degrees. If they don't make this decision, how is it going to impact something else that they are trying to accomplish?

If they, if that doesn't happen, how much does it set a timeline back on other things that they're trying to accomplish? So they're actually looking at not just what happens if they say yes, but what does the impact, if they say. No. So for example, for everyday investors, maybe you're planning on trying to retire early in three years, but if you decide that you're gonna take a year off of doing any investments because everything feels too crazy and too uncertain, then that means that maybe you'll have to delay your retirement for another year or two.

And it may seem like, oh, that's not a terrible decision, but when you lost sight of your why and what you're working towards and you just start kind of giving into. Fear because things are uncertain that is not operating in the same fashion that the most successful and wealthy people do. They know their why and they're going after it.

Now, last but not least, what's important too is that you actually have a whole strategy mapped out. When you know where you're going and you know why you're doing it, it's a lot more ex. Siting to continue to move forward and make progress in your financial goals and your investment plans because you see the whole picture.

You know that, Hey, this quarter I'm gonna invest in this deal, and next quarter I'm gonna look for another investment to get into so that I am working my entire strategy of being diversified, having multiple streams of income coming in and knowing that, hey, by the time I'm starting with one, or I'm starting with two, by the time I get to 10, I'll be able to accomplish.

This particular goal that I have set for myself that is a real strategy and a real plan, and all of the investors I know have actual strategies behind what they're doing. They know why they're doing it, and they remain focused on that. So this is how rich people are able to continue to make investment decisions, even with the looming uncertainty of recessions or tariffs or any of the other things that is happening in the economy and around the world right now.

So I hope you guys found this helpful. I hope if you needed a nudge, this is helpful to you and gives you that nudge. And for those of you that already operate according to these principles, let me know what I missed. Are there any additional principles that you also think it's really important to share with other investors to help them stay on track?

And accomplish their goals. So I hope you guys found this helpful. Don't forget to subscribe to our channel if you're watching along on YouTube. If you are listening along, make sure that you give us a review and help others find us. If you would like to subscribe to our newsletter, which we send out every week, that has a lot of insightful information about multifamily real estate, the economy as a whole, and a lot of other financial metrics.

Please visit us@bluelakecapital.com. In the meantime, I hope you guys found this helpful and I will see you on the next episode.

Ready to Scale is brought to you by Blue Lake Capital, where we hunt down the best multifamily investment opportunities that we can find and invite investors to join in with us. We target class B value add multifamily properties across the Sunbelt. Our CEO Ellie Perlman, invest a substantial amount of capital into every deal.

This means our interests are aligned with yours. If you're an accredited investor looking to expand your portfolio and diversify sponsors, be sure to visit us@bluelakecapital.com. Blue Lake Capital, be bold, be extraordinary, and keep moving forward.