There are different types of recession...including global pandemics! Discover the anatomy of different recession and how to prepare our property portfolio in defence of them. That's what this presentation is all about.

1. Be Ready!
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2. BULLETPROOF YOUR
PORTFOLIO
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3. Outline
➢4 Principles for NOW
➢Recessions & how they can impact us
➢Making our property portfolio bulletproof
➢Finish on a high…opportunities & trends
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4. 4 Principles for Now
1. Look after ourselves and others
2. Control that which we can control
3. Use this time wisely
4. Ready ourselves for opportunities ahead
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5. Holistic Well-Being
◦ Health & wealth
◦ Physical, metal & emotional health
◦ Personal balanced scorecard (Wheel of Life)
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6. Emotional Pyramid of Needs
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7. Recessions & How They
Can Affect Us
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8. Main Causes of Recession
◦ High Interest Rates (e.g. 1973, 1980 & 1990)
◦ High Inflation (e.g. 1973 & 1980)
◦ Currency Shocks (e.g. 1990)
◦ Lack of Liquidity / Credit Crunch (e.g. 2008)
◦ Regional/Global Shocks (e.g. 1919, 1930, 1939, 1973 & 2020)
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9. Potential Impact
◦ High Interest Rates – High cost of borrowing
◦ High Inflation – Lack of affordability of housing/rents
◦ Currency Shocks – Devaluation of assets
◦ Lack of Liquidity / Credit Crunch – Lack of financing
◦ Regional/Global Shocks – Reduced economic activity in general
(all of the above!)
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10. Quick History Of Pandemics
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Source: Visualcapitalist.com

11. Spanish Flu
◦ Closest pandemic to Coronavirus / Covid-19
◦ 1918 post-war breakout, aided by migrating soldiers
◦ Death toll 40m to 50m
◦ Short, sharp shock during lockdown periods
◦ Approximately 2 years to recover
◦ Asset prices seemed to bear up OK
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12. Common Threats to our Property Portfolio
◦ High levels of gearing
◦ Low net cashflow
◦ Exposure to sudden interest rate rises
◦ Lack of tenant demand
◦ House price crashes
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13. Primary Defences for our Property Portfolio
◦ High levels of gearing – Reduce debt levels
◦ Low net cashflow – Invest for yield/income
◦ Exposure to sudden interest rate rises – Fixed rate loans
◦ Lack of tenant demand – Multiple uses/exits
◦ House price crashes – Long-term fixed rate/liquidity reserves
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14. Secondary Defences for our Property Portfolio
◦ High levels of gearing – Manage LTV (balance growth with debt)
◦ Low net cashflow – Rent collection/monthly accounting &
reconciliations
◦ Exposure to sudden interest rate rises – Detailed T&Cs review,
avoid min LTV provision clauses, aim for fixed interest rates
◦ Lack of tenant demand – Alternative strategies such as trading
◦ House price crashes – Add value/equity, don’t overleverage, play
it long
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15. Decision-Making & Guidance
◦ Mental Models – www.michaeldsimmons.com
◦ Investment Principles – Ray Dalio, RB Investment Criteria
◦ 20-Point Bulletproof Checklist
◦ Recession Test Your Portfolio – Portfolio Assessment
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16. Bulletproof Property Portfolio 20-Point Checklist
Short-Term Mid/Longer-Term
1. Monthly management accounts 11. Manage average portfolio LTV downwards
2. Rent/bank reconciliations & cashflow forecast 12. Pay down debt
3. Enhance rent collection & void procedures 13. Fix interest rates mid-to-long
4. Build personal liquidity buffer 14. Repurpose or strategic disposal of assets
5. Check lender T&Cs 15. Tax planning & sheltering
6. Assess each property for potential to repurpose 16. Limit liabilities
7. Review alternative exit options 17. Multiple income streams
8. Claim all payment holidays, grants & taxes available 18. Rebalance across other asset classes
9. Defer or ditch non-essential expenditure 19. Focus on due diligence & security
10. Insurances assessment 20. Alternative capital sources
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17. Potential Opportunities to Observe
◦ Buying at a discount: cash and quasi-cash talks
◦ Emerging trends: remote/home working, PropTech (e.g.
virtual, online, AI), need for personal space, and health,
wellbeing & sustainability
◦ Rise in alternative financing: crowdfunding, P2P, SSAS, family
offices/funds, private/JV finance, cryptocurrency)
◦ Partnering Models: vendor/owner financing, options, assisted
sale, JV rental models, etc.)
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18. Next Steps
Resources – Send Email/Message to get…
➢Slide deck, Incl. all references & links
➢Sample due diligence checklists
➢TPV articles bundle
➢Personal balanced scorecard (Wheel of Life)
➢Portfolio recession assessment model
➢Desktop portfolio assessment – free & optional to qualified attendees of this session (Quote:
Bulletproof Vest!)
Make sure you put your bulletproof vest on!
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