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What Do Market Corrections and Marathons Have in Common?

Two weeks ago I finished my first marathon and learned that a combination of two strategies works best for surviving long runs and market corrections--you must first save by creating efficiency of movement and conserving energy.  Next you must grow through the pain and lead your way to success in preparation for future recovery and expansion. In a marathon, the first few miles are tough.  It's hard to accept that you're about to go through a difficult ordeal that will involve a lot of expenses, little income, and that you won't be able to truly rest until you cross the finish line.  The beginnings of a market correction feel this way.  It's a shock to the system, but you slowly adjust and get your pace. As you move forward, you have to be careful to conserve your energy.  Several times during my marathon, my fiance--a 12 marathon veteran--would grab my arm and tell me to slow down. She'd say, "You're going to need to make deposits for the first half of the run so you can make withdrawals for the second half."  Each time I began to increase my pace, she would reinforce the lesson again. As we entered the second half of the race,  I still had energy;  nevertheless, I could feel the impact of the distance and time taking its toll.  I had to dig and start making withdrawals as we picked up our pace. Through the second half of the race, you begin to push towards the end.   You increase your pace, pass others who can only walk or give-up, and manage the pain to the finish.  The longer you go, the more you spend as you accumulate time and mileage. You know, however, that you are going to finish and that when you do, it will be remarkable. In a market correction, your second half offers you the opportunity to create generational wealth because it's a time when only the strong flourish and acquire.  Early on, those assets may feel like liabilities, requiring tremendous outputs of capital, time, and resources, but you know that if you can make it to the finish, you'll cash in with what you've gained along he way. (For more, look at Sam Zell's Stamford, CT acquisitions in the 1990's.) As you near the end, you feel the rush of completion--you survived the ordeal and came through in one piece.   It wasn't easy and you didn't give up.  You paced yourself, knowing that making those deposits for the first half were critical to finishing and that making those withdrawals and growing through the end make for a remarkable experience and the opportunity for future expansion. Find out how to position your portfolio today to finish strong. Email me at Jeremy@Mansardcre.com with the words "Markets and Marathons" in the subject line.  Include your name, when you would like to be called, and the best number to reach you. I will contact you to schedule a time for you to invite me to your building or office for a free consultation.  If there's a fit, you may retain us to develop an Asset Management Optimization Plan for your property.  If there isn't a fit, we'll tell you we cannot help and will refer you to another firm that may be a better match. Get free weekly email updates of this blog. About the Author:Jeremy Cyrier, CCIM is a principal with MANSARD Commercial Properties and member of the CCIM Institute faculty. He offers advisory services and brokerage expertise to commercial real estate owners and investors. Jeremy Cyrier, CCIM was elected by Banker & Tradesman as one of its New Leaders in 2009. You may reach Jeremy at Jeremy@Mansardcre.com.