Making Money in a Real Estate Recession

Many forget the next real estate recession is somewhere in the future. They forget or never lived through the pain of a real estate recession. I have lived through 3 of them so far. However, believe it or not…You can get rich in a real estate recession….Yes you can get rich in a real estate recession…Had to say it twice as many do not believe that it is possible.

Sam Zell, the proverbial Grave Dancer in the US has had countless fortunes in real estate in the US by timing the real estate cycles. He buys at distressed prices when others that are leveraged can not hold on.

In a real estate recession you have three Ds…Debt….Divorce and sadly death. Many investors are over leveraged as are banks. They want to dispose of real estate assets quickly and many times quickly. All you need is liquidity or access to liquidity…Buy cheap and when the cycle eventually changes…Sell high. Not rocket science. There have always been defaults during recessions and will be in the future.

More so the stress of a recession rakes the foundation of families and sadly many split. The stress of a recession as well leads to heart attacks and illness. Both of these situations create motivated sellers.

Currently I am personally very concerned at the levels of debt and the publics love of real estate. I like buying when real estate is hated. Currently myself and my JV partners are only buying GREAT deals. Not marginal…but GREAT deals and paying cash. I do not want debt…We are selling in order to buy and keep high cash flowing social housing HMO properties.