Beat the Recession: How to THRIVE in Uncertainty

Beat the Recession | Kitti Sisters

041: Beat the Recession:  How to THRIVE in Uncertainty

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We’re back‼️ With another jam-packed post on our least favorite R-word, recession. 

If you’ve been following 🎙️ the Cashflow Multipliers Podcast, you probably already know the villain origin story of inflation and how that affects today’s market, especially when it comes to your investments and assets. 

Like any villain, inflation was born out of some broken circumstances, so we have to understand how it operates in order to protect your investments – and realize inflation isn’t evil, just misunderstood. So if you haven’t checked out EP038 Your Survival Guide to an Impending Recession as an Investor yet, we highly encourage you do before jumping into this one. 

And why is that? Because there’s a phrase we like to say here at Cashflow Multipliers, you were made to thrive and not just survive. And, well, the recession has a way of just making you feel like you’re barely scraping by.

Our philosophy? Build a life where you’re thriving– not just surviving.  😉😉 Easier said than done, we know. Especially as we try to navigate the trenches of this economy. A common question we get asked is “is recession our future?”

Check out these articles for a deeper dive on what we’re referring to:

“The 2022 Recession: How to Prepare for the Next Market Crash”

“‘You Have to Kill the Economy to Rescue It’ Fed Announces Interest Rate Hike”

We know, nothing about those headlines sounds exciting or like you’re thriving. 

And with Russia invading Ukraine, inflation at 8.64% last I read, and interest rates spiking, things have been looking grim.  🥺🥺

And let’s not forget that as of March 31 of this year, both the 2-year and 10-year treasury hit 2.38%, which created a brief inversion curve– which is a true sign that recession is coming. Yet despite all of this, there’s never enough supply to fulfill the housing shortage.

Based on recent predictions of the leading global investment banks, we are quite possibly headed for a deep recession.  

But, before we all start pressing the panic button, let us help you see the two sides to this whole recession situation. 

You could say we’re… reassessing the recession.

Here’s the deal 〰️ recession doesn’t have to be this big scary monster living in the shadows of your closet, or worse, your bank account. We know that sounds crazy, and for those who survived, or even still recovering from, the 2008 crash, it might even feel personal. And we want to acknowledge where people are at. What people tend to forget though, is that recessions are a normal part of the economic cycle which typically occurs every 5 years or so in the US. 

As a matter of fact ➡️ recessions are part of any healthy market cycle. 

So before we sound any alarms alarm ⏰, let us walk you through three secrets that are going to totally change your perspective on how you think about the recession. And how these seemingly “dark and scary” times are actually the greatest opportunities for your investments to see success.

Wait A Minute… 

But before we continue any further– let’s remind, Team Cashflow Multipliers, our success didn’t come overnight. 😵😵 Like so many investors and apartment syndication wizards and general partner gurus before us, we lived and we learned. And one of the biggest lessons we learned right away is that there’s no such thing as an ideal time for investing. You can make a profit no matter if we’re in a recession or not. 

And we know this sounds so counter-cultural. A recession has this reputation of being doom and gloom. Big Eeyore energy if you ask us. 

And it makes sense, right? When the economic situation is bad, that tends to mean less money in our pockets, higher interest rates, and overnight gray hairs thinking about cash flow. With the recession, the theme always seems to be things get worse before they get better. 

There are many analogies to compare recession to, and our favorite compares recession to a violent storm. 🌪️

Those caught up in a storm will undoubtedly sustain damage, but the extent of it depends on their preparedness.  💪 The effects range from an inconvenience to a life-changing disaster. And there are many factors at play to determine what your fate will be. 

Factors like where you’re located, how vulnerable you are to its effects, how much you have to lose, and of course, how prepared you were beforehand.

Do you see where we’re going with this? Natural disasters and storms are inevitable, but with some planning and prevention, it’s a lot more digestible to see how you will come out of this storm afterward, based on the elements that lie within your control.

That’s why when you see storm clouds coming in, check your toolkit, your safety measures, and stockpile those non-perishable goods because it is much you can do to not only ride out this recession but actually thrive in its uncertainty.  😘😘

Are You Excited to Make Serious Money Here?

Are you excited to make money in this storm?! Because we are for you. Check this out!

“Even during the Great Depression, when one-third of Americans were financially devastated, more millionaires were created at that point in time than at any other time in American history (adjusted for inflation). 

The article continues by saying “The same is true now: one-third of Americans have and will be hit hard by the pandemic and the recession; one-third will be able to maintain their lifestyle, but it will be increasingly tougher to do so, and one-third of Americans will get much richer.” (by Gunderson) 

Which one-third will you be a part of?  🧐🧐

To illustrate the importance of making your own luck, and turning circumstances into opportunities, we’ll tell you a story.

Does the name Charles Darrow ring a bell? You may not know Charles Darrow’s name…  But you certainly know his game, monopoly‼️

Before Charles Darrow was the millionaire game maker he is now known for today, he had humble beginnings as a heater salesman in Germantown, PA. After the 1929 stock market crash, Darrow, along with the majority of America, was struggling to make ends meet. 

If you couldn’t have the cash in real life, Monopoly money sufficed as their second-best option and offered a mini escape from reality.

During that time he developed a game on the premise that bankrupts people to the delight of the winner. He played it with friends, who loved it so much they asked him to make multiple versions of it.

Soon after, he was selling copies of the game at $4 apiece and was selling it in Pennsylvania Department stores. He became booming with business and tried to sell the game to game investors, the Parker Brothers, but Darrow was met with rejection. 

But Darrow didn’t let that stop 🛑 him. It wasn’t until a friend of the Barton family (which owned the Parker Brothers) told Darrow how great his game was that the well-known gaming company saw potential. They bought the game from Darrow and offered him royalties. By 1939, 20,000 units were being produced per week! 

Charles Darrow became a very wealthy man during one of the worst economic downturns in American history and became the first millionaire game designer ever. He decided to figure out a way, against all odds and learned how to thrive in uncertainty.  😎😎

What Nan and I love was that Darrow did not let his circumstances define his financial future, and turned lemons into lemonade. 

Or, in his case, paper money into some serious real money.

Fire-Proof Your Investments 

Keeping on track with the disaster analogies and how you can be prepared, the second key thing to know about your investments is to recession-proof every one of them. 

Think of this as 🔥 fire-proofing. Obviously, it would be terrible to live through such an unfortunate event, but there are wise steps you can take to ensure your investments don’t come out with third-degree burns. The main thing you need to know here is that your investment strategies should always be grounded in fundamentals and not speculative. 

These are things you can be sure of and are in your control. Things like your internal investment criteria, and your own checklist of standards and ways of investing that are agreed upon between you, and your team. Do you have some of these items on your internal investment criteria checklist? Let’s walk through some of the ones we have to ensure these investments are recession-proof as possible.

➡️ We focus on investing in good assets in good neighborhoods, this is not the time to go for the C and D class deals.

➡️ We invest in strong markets with great fundamental population, rent, and economic growth that does not easily succumb to speculative markets.

➡️ We invest in core markets. Recessions tend to hurt apartments more in smaller markets that do not have a strong economic base.

➡️ We study markets that had weathered previous recessions best. Which areas, states, and counties come out on top when the economy takes a turn?

➡️ We review loan terms, factor in risk and yield, plus pay attention to key metrics such as the NOI (net operating income) and debt service ratios.

➡️ We also perform sensitive or stress tests for worst-case scenarios. It’s the responsible thing to do! 

➡️ We invest in deals with simple, easy-to-implement business plans. Here’s a bonus tip for ya: If a deal’s success depends on how many things are going right, then it might not be a good deal.

➡️ And one of the biggest ways to recession-proof your investments, know, like, and trust your deal sponsorship team. They are just as much invested in success as you are.

It’s no secret that we believe apartment investing is the ultimate space to be in right now. Billions of dollars 💰 are pouring into multifamily real estate because people are catching on that in a time of economic uncertainty it’s the best vehicle to not only shelter their wealth, but actually grow it and see that cash flow come in. No matter the season of the economy.

The Time is Now 

The third secret we’re letting you in on to thrive during the recession is that anyone can take advantage of the biggest wealth transfer in history that’s happening right now. 

And the best part? You don’t have to be in the top 1% of anything or have millions in the bank. Talk about a moment in time! All you need is knowledge, a network of people, and leverage. For the first two we, the Kitti Sisters, can support you with, the leverage you got on your own!  🤟

The two of us tend to get a liiiitle competitive. 

Understatement of the year, but yeah. We turn just about anything into a competition. Including Monopoly. 

That’s why it’s important for us to tell you that in the game of wealth, you and your family can’t afford to sit on the sidelines. To win you’ve got to learn the rules and implement the best strategies for success. 

Check out this quote from one of our favorite musicians 🎵, Mark Hall

“There are those who understand what is happening and those who are snoozing their way to having a large portion of the value they’ve created eaten for breakfast by a stranger in a red devil suit.”

We love this quote because it’s pointing back to something we are deeply convicted of: being on the right side of history and taking advantage of this moment. Here’s the thing, we are witnessing the biggest wealth transfer in the history of the world and it’s happening right now

So if you’re listening to this at a job you can’t stand, or dreaming about a life you know could be different for your family, if you’re tired of just surviving, this is truly the phrase “carpe diem” – seize the day –come to life.

As you guys already know, in the last few years, especially during the current pandemic, the U.S. government has pumped trillions 💵 of dollars into the economy.  The key here is ultimately the money will end up in the hands of a few. And more specifically, the hands of those who know how to thrive in uncertainty!  And of course, we would want it to be in our hands right?  

Now, in the time of an impending recession, it’s normal to feel a little unsure.  Perhaps you don’t know what asset class to invest in, who to trust, or you’re doing well in the stock and you want to keep going at it. And we get it, not all of us have millions of dollars stored away and ready to invest.

That’s why we’re here, to tell you you don’t need to gain all the expertise yourself.  

Picture this, it’s later in the year, you’re working with a team of experts and together you’re leveraging strategy to thrive in uncertainty. The recession is here, but your team is making money work for you. Recession who? Don’t know her. 😉😉

We’re here to remind you that while so many people are focused on fear, you can utilize recession as the best wealth-building period ever. Here’s the mental shift you need to start making today: Move away from just working for money to a world where money works for you. 

In this game of life, there are too many of us sitting on the sidelines when we are made to get up to bat. Because ultimately to become an investor, that’s what it takes to become financially free.

And more than just being there for you guys, here at the Kitti Sisters, we’re cheering you on! So here’s to a lifetime income stream that will never run dry–without having to do it yourself.


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Invest with the Kitti Sisters

Fortified with years of experience, fierce passive investors (we ALWAYS in our own deals), and selected high qualities investment opportunities to help build your long term wealth no matter what stage in life you're on. We will show you the ropes, help you build out a powerful, personalizes strategy, and give you masterful, financial freedom focused on living your lifestyle dreams.

We're Palmy ➕ Nancy Kitti 〰️ The Kitti Sisters

A sister duo team obsessed with all things financial freedom, passive income, and apartment investing + apartment syndication, who turned a $2,000 bank account into a nine-figure empire.  Now, we're sharing with you the behind-the-scenes secrets of our wealth building strategy.

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