What would you do if half your business dropped off?
The Apocalypse Test
Have you done a Stress Test?
Wendy Sweet and Bill Fairman are joined by Jonathan Davis to go through their Stress Test and what they are doing to prepare for the worst so they don't get caught.
In Part Two, they discuss spreading the risk by having ten houses in your portfolio, not just one, or investing in ten notes, not one.
One task they do monthly is review their financial statements, expenses, their bills. All may be little individual expenses but over time it can add up.
What do you do if you lose most of your business? 1) Communicate with people in and outside of the business
2) What are your highest expenses?
3) Review and communicate the results of the Stress Test
4) Reach out for more capital
5) Help our investors increase their cash positions
6) What are your strategies to handle downturns? Wendy, Bill and Jonathan discuss different strategies.
When you have difficult times, and everyone does, you have to be transparent and don't be afraid to ask for help.
Financial Tip: Take 25% of your income off the table and see what happens. Then move to 50%.
If you are serious about building a strong long term business, the concepts shared in today's show are crucial.
Carolina Capital is a hard money lender serving the needs of the “Real Estate Investor” and the "Small Builder" borrower who is striving to build wealth and generate income for themselves and their families. We offer “hard money rehab loans” and "Ground up Construction Loans" for investors only in NC, SC, GA, VA and TN (some areas of FL, as well).
As part of our business practices, we also serve as consultants for investors guiding them to network with other investors and educating them in locating and structuring transactions. Rarely, if ever, will you find a hard money lender willing to invest in your success like Carolina Capital Management.
