Alfonso describes the current market as full of opportunity, comparing it to April 2020. He believes the next several months will see one of the biggest wealth transfers in history, and that real estate is the only asset class capable of true capital preservation during uncertainty.
Alfonso recommends staying away from strategies vulnerable in a recession, including Airbnb rentals, vacation rentals, storage units, commercial spaces, and office spaces. He explains that these are among the first expenses people cut during economic downturns, whereas everyone needs a place to live.
Investors should review their current portfolio to identify opportunities to stabilize, optimize, and maximize cash flow. Alfonso suggests adding paid storage units, investing in energy and hydro savings, and repositioning properties to improve net operating income and recoup losses from rising rates.
Conservative underwriting means stress-testing your deal against the worst-case scenario and ensuring you have proper reserves and realistic vacancy rates. Alfonso emphasizes making decisions based on actual market data regarding tenants, rents, and purchase price rather than hope.
Alfonso advises investors to focus on building relationships and developing people, investing in themselves through leadership and sales education, and being determined with clear goals so they do not take 'no' for an answer when pursuing deals.
