So Why Do Some Call It Economic Recession While Others Call It Opportunity!

 

Entrepreneur do you personally know anyone that’s suffered any type of  financial hardship of any kind lately? Maybe they lost a business or a home as a direct result of some type of business hardship.

If so, believe it or not.

These are definitely seedlings, from which an economic recession, can often, (over time of course), be eventually turned into some type of economic opportunity.Say what? Nod your heads cadets, because it’s true.

Or maybe they once had a solid marriage crumble or a business relationship take a turn for the worse?

All because of the so called economic recession.Lots of things, including relationships of all kinds, get tested during any type of long term economic hardship.

That’s the not so good news. However, (believe it or not), there is a potential silver lining in the clouds.

Simply put, just like a closed balloon, as you squeeze one side and it’s contracting, simultaneously, the other side is expanding.Correct?

And so it goes in business, and life in general.While one business and or industry suffers through any type of temporary and or prolonged hardship, there is always a few untapped potential opportunities to turn real adversity into a total win/win situation.

In fact, it’s not so uncommon these days.In order to illustrate this point, here is an up close and personal true story, that demonstrates how a temporary loss and or set back, can sometimes be salvaged!

 One Persons Economic Recession Is Another Entrepreneurs Opportunity!

First of all, let’s be clear. Hardships of any kind can be a very emotional and stressful period  in a persons life! Right? Agreed.

So what I’m sharing here is not to suggest that everybody lives happily ever after. Because, you all know and recognize that little something called real life.

However, this true life case study example does demonstrate how temporary adversity can be some what salvaged, by at least some of those involved.

But not everybody (as you’ll soon discover), and every situation can be salvaged. But in this particular case, practically every one was!

A while back, an extremely close relative of mine that we’ve kept in constant contact over the years.

They called and left me one of those extremely sober sounding, “I really need to talk to you about something” kind of phone messages. (That we all get and dread from time to time!)

Some Times Long Term Opportunity Shows Up Cleverly Disguised As A Temporary Set Back!

And immediately, I’m wondering if another relative is gravely ill or perhaps they need to temporarily borrow some money.

As fate would have it, it turns out, neither scenario was the case! The short of it was this.

Because of my fairly extensive understanding and involvement in a niche area of real estate investing, known as the discounted mortgage industry. (Aka) the paper industry.

The term “paper” is industry slang for some type of debt instrument. So it turns out my relative was actually seeking my advice (on a paid professional basis no less!)

On how (if at all), they could somehow purchase a relatively nice single family home for their rapidly aging parents!

And of course their parents, (as far too often) is the case, had very little current liquid (cash) assets.

Such as substantial cash savings and were both currently living on extremely small fixed monthly incomes of some kind!

As Is So Often The Case You Often Whined Up Doing Far More With A Whole Lot Less!

And of course my relative was wondering, (more like hoping) that through my understanding of some of the more advanced, (read that) less conventional real estate financing alternatives.

If they could some how not pay full retail price, and still acquire a decent property for their aging parents to live in! (Is there anything else I can put on your list!)

A fairly tall order (wouldn’t you say?) But certainly not impossible by any stretch of the imagination.

In the interest of time, the entire episode is being extremely condensed here! In order to cut the chase!

So here’s what yours truly was able to do for them.(Mind you, they were, much to my surprise, prepared to compensate me by paying my normal hourly one on one personal consulting rates of just $250 per hour!

Even If The Glass Is Half Full Find A Strategic Use For That Half!

Hey, but as I said, they’re an extremely close relative! So here was our understanding going in. I’d offer my help via consulting and if,  (and only if!), they were completely satisfied with the final outcome!

They’d provide me with a written testimonial, in lieu of my paying my normal hourly consultation rates.

Basically, they were instructed to reach out to their local banker and credit union, by way of their own personal attorney that specialized in real state closings.

And their attorney asked a specific loan officer if the bank currently had any repossessed, foreclosed single family home properties on their books.

Which they like, (or need) to get rid of asap.

It’s Always Best To Learn How To Continuously Ask The Right Questions!

BTW, these types of properties are also referred to by insiders as (REO), real estate owned properties.

Ninety nine percent of all banks and or credit unions have some of these foreclosed properties on their books at some point or the other!

Turns out they did! Imagine my surprise! (The sarcasms mine!) Anyway, the property ( bare in mine ,was located in the south. )

And my relative arranged to finance it for $24,000 (which was the current unpaid mortgage balance), plus a few additional fees when the property was originally repossessed.

And they also arranged to finance it through their local credit union. And their parents could easily afford the monthly mortgage payments and escrow-ed taxes and insurance etc!

Turns out, it was still actually still cheaper than renting a comparable apartment!

There’s More Than One Way To Benefit From Helping Others Solve Their Problems!

So the short of the situation was this. The moment my relative bought this repossessed (foreclosed) house from the bank. And paid just over $24,000 dollars for! It immediately appraised for $40,000 dollars!

Which means they had an instant equity (ownership) profit (on paper mind you!) of $16,000!

Their parents of course made the mortgage paid until they eventually passed on! My relative eventually ended up selling the property a few years later.

And finally realized their $16,000 dollars plus, in gross profits, minus a few costs and some eventual taxes don’t you know!

It Was Truly Gratifying To Know My Knowledge And Experience Could Really Help Out A Close Relative!

The bank got a non performing asset back on the property tax rolls! Because whether you realize it or not entrepreneur.

If the bank or any other licensed financial institution gets too many of these bad, non performing loans on their books!

They can be (at a minimum), severely fined and or eventually shut down. And forced into federal receivership!

So needles to say, they are extremely motivated to move, (sell) these properties and get them back on the asset side of their ledger as quickly as possible!

Lots Of Times Temporary Adversity Can Eventually Be turned Into Some Type Of Mutually Beneficial Economic Opportunity!

Now sadly, the original party that for whatever reasons, lost their home through the foreclosure process! Obviously, yours truly wasn’t able to help  them!

But my heroics did help out a close relative and the bank.

And I also got a written testimonial touting my services, which I still have to this day!

And I’m told by my relative, that they often mention my generosity around the table at Thanks given periodically! That’s my idea of win/win!

And while some may call it an economic recession, others call it opportunity! What say you?

So It’s definitely Not The Labels! It’s The Overall Mindset Which Ultimately Counts!

Please list at least two simple spin off concepts (in the comments section below) that you can apply to your business, product or service in the next 30 days or less!

As always, if you got any value out of this post, please share this on your favorite social media sites or tweet this. Thanks!

And if you’re currently registered on Linkedin or twitter,and you’re serious about about doing some type of power networking.Let’s get connected asap!

Extremely important note:And if by chance, you happen to know any of the lesser known podcasters,who also target,small business owners,service providers or aspiring startups entrepreneurs etc.

And they’re pro-actively looking for potential guest speakers.Please don’t hesitate to-either- pass their name and contact information directly
to me or vice versa!Thanks!

And if you’re currently registered on Linkedin or twitter,and you’re serious about about doing some type of power networking.Let’s get connected asap!

Extremely important note:And if by chance, you happen to know any of the lesser known podcasters,who also target,small business owners,service providers or aspiring startups entrepreneurs etc.

And they’re pro-actively looking for potential guest speakers.Please don’t hesitate to-either- pass their name and contact information directly
to me or vice versa!Thanks!

And if you’re currently registered on Linkedin or twitter.Let’s get connected asap!

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And help you master your effective communication in marketing skills.(No matter what your particular niche  market is.)
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