How to Get Rich In The Recession

The recession is coming and if you are prepared, you will make a lot of money while others are losing it.

In the crash of 2008, I made LOTS of money by investing in real estate for passive income and monthly cash flow. I do this by making sure I make $250 minimum per month in passive income from every rental property I purchased.

Now, those properties that I bought over a decade a go are making me $400, $500, and even $1000 a month in passive income.

This is because over time rents go up but my expenses stay the same.

Now, with a recession looming over us and an economic crash being possible, will you be ready to capitalize on the very thing that will crush most people?

People Are Worried About A Recession

The recent podcasts I've been on all have the same concern. “What's happening to the real estate market”?

Honestly, things are going to be bad for a lot of people. But, if you are prepared, you will be able to profit from the recession.

Actually, I believe coming soon is going to be the best time ever to invest in real estate. All the things that people are worried about, I and other real estate investors are excited for them.

When other people are worried about these things, we are excited for them:

  • Coming recession
  • Crazy high inflation
  • Home values crashing
  • Rising interest rates
  • Rent increasing 10%-20%
  • Job layoffs
  • and more

Investors are excited because we will make so much money in the recession because we are prepared.

If you are prepared, you can make a lot of money when everyone else is losing it.

In 2006 when I started investing, prices were going up just like 2020. Then, in 2008 when the market crashed, I made even more money in passive income because my rents went up.

And, because I invest for passive income and generational wealth, I have buy-and-hold real estate that makes me money when I sleep. And, if the market goes up, down, or sideways, I still make money from the rents my properties bring in.

What Happens In A Recession

During a recession, consumer spending decreases as people have less disposable income, which in turn leads to a decrease in business revenue. This can lead to businesses laying off workers, resulting in a rise in unemployment. The decrease in economic activity can also lead to a decrease in the value of stocks, bonds and other financial assets, causing a drop in the stock market.

The quote “when there is blood in the streets, you need to be buying” is a phrase often attributed to the famous financier Baron Rothschild. It suggests that during times of economic turmoil and panic, such as a recession or market crash, investors should look for opportunities to buy assets at a discounted price.

The phrase “blood in the streets” is a metaphor for economic chaos and suggests that during these chaotic times, investors who are willing to buy assets despite the turmoil will be able to acquire them at a lower cost and potentially profit when the market recovers.

Buy properties at 50% off the previous value. Our competition as investors are home buyers. Because of rising interest rates, these home owners are priced out of the market. Home owners are the ones who drove up the price of properties paying 10% or more.

A mortgage payment of $1800 a month would buy a $450,000 property with a 3% mortgage. But, that same $1800 payment can only buy a $250,000 property with a 7% mortgage. Because the home owners cannot

Effects Of An Economic Downturn

One of the things we can observe during this economic downturn is that prices have gone up 35 percent in the last year, inflation at 10%, and the government has been printing 80 billion dollars a month.

This is all part of a more significant trend of instability and volatility in the global economy.

The market crash of 2008-2009 was a direct result of the increase in debt and the unstable economy.

As the global economy continues to unravel, prices will continue to rise, and inflation will continue to increase.

This will lead to more economic recession and instability, which will have a negative impact on the global economy and the people who live in it.

Millennials Are Saying It Is Hard To Buy Property, But For Investors, It Is Not Hard To Buy Properties.

Millennials are saying that it is hard to buy property, but for investors, it is not hard to purchase properties.

There are several ways to buy property without having to spend much money. For example, you can search for properties on real estate websites like Realtor.com or Zillow.

You can also use online tools to help you find properties. For example, the real estate websites Roofstock and Deal Check has a tool that helps you find properties by analyzing property data.

And finally, you can contact real estate agents to see if they have any properties that you could buy.

These methods are easy to use and can help you find properties that are a good fit for you.

Make Passive Income From Rental Properties

Rents – Expenses = Passive Income

It is that simple.

When you buy 1 rental property, you need to try to make $250 or more in passive income from each property.

  • 1 property at $250 a month is $3,000 a year in passive income
  • 10 property is $2,500 a month is $30,000 a year in passive income
  • 20 property at $5,000 a month is $60,000 a year in passive income
  • 40 property at $10,000 a month is $120,000 a year in passive income

But, there is a key component you MUST know before you start investing.

BUILD THE BUSINESS FIRST

This is a statement you need to drill into your mind as you start investing in real estate.

When you build the business first, you have a running business with experts doing the work for you. They are:

  • Helping you find good properties to buy for rent
  • Manage the property for you
  • Help you get financing for your next property
  • Fix up your property when you are playing with your kids
  • Make sure you are not losing money in your business

What this looks like is:

  • Find the right city with good inventory (properties) that you can buy that make you $250 or more in passive income
  • Interview MANY property managers and select the top one to manage your properties
  • Get many mortgage brokers working for you to find you money to buy the properties
  • Hire inspectors to do the inspection before you buy the property
  • Have the property managers walk through the property BEFORE you buy it
  • Get many quotes on the repairs needed to make it rent ready
  • Have the property manager find the best tenant for your property
  • Collect rents and if necessary, evict tenants

These are just the start of all the things that others will do for you when you build the business first.

How To Prepare To Invest In The Recession

  • Stop over spending and going into debt
  • Start saving 10% of your income for future investing
  • Start learning how to invest in real estate (Get my free real estate investing course here)
  • Try to create ways to make more money to invest: Raise from your job, start a side hustle, sell things on eBay, etc.
  • Save all your passive income from the properties to buy your next property. Like a snowball, the farther down the hill it goes, the larger it gets. The more properties you buy, the larger your passive income is and the more money you make.
  • Build your business first before the crash so you are already investing when it does
  • Always be prepared for a market crash. And when it does crash, buy more properties to make you more money in passive income.

If you are prepared, you will make a lot of money if you invest in real estate the right way.

Remember this: You don’t wait to buy real estate… You buy real estate and wait.

I hope you have lots of success in your real estate investing!

How To Invest In Real Estate When The Economy Is Shifting & You Don’t Have Money

Capitalize On Market Crash

When the market crashes, everyone else is doing just that. Homebuyers pull back, sellers panic, and prices fall.

While it’s great to buy a home at a price you were happy with, you need to be aware that this is happening.

Capitalize on the market crash to your advantage by purchasing properties at depressed prices. This will increase in value over time and make you money while the market is down.

Avoid buying at the top of a market rise, and make sure to hold onto your investments for the long term.


 
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Make Money Amidst Economic Changes

With each phase of the business cycle, we see investment trends shifting.

Investment funds are often diversified across various asset classes to take advantage of these changes.

However, as we move into a new economic phase, it’s wise to prepare for a shift in an investment strategy that may affect your portfolio.

For example, real estate funds may want to be more conservative because of weak economic conditions.

Or a real estate investment fund may want to invest in more conservative investments because economic conditions are shifting in that direction.

There are many different ways to invest in real estate, and as the market continues to move, your funds may fall into one of these categories.

In that case, you can use the funds or sell them and take a loss on the investment.

Look At The Long-Term Picture

Real estate is a long-term investment; like all investments, it comes with risks and rewards.

If you buy a house today and profit later on, that’s a good thing. But if you must keep paying off a mortgage or mortgage loan for years, that’s a less-than-ideal situation.

If you don’t love real estate, you shouldn’t do it.

To make money in real estate, you need to love the game, know how to play the game and know when to buy and sell.

If you’re not invested in real estate for the long term, you’re essentially throwing your money away.

Diversification

One of the best ways to diversify your investments is to buy various real estate types.

Many investment funds provide diversification, including funds that invest in stocks, bonds, commodities, and property.

If you have a small amount of money to invest, consider purchasing various assets to increase your chances of success.

But for those with significant investment funds to spare, buying different assets will provide a greater chance of survival in an economic downturn.

Look At What The Economy Is Doing

As we mentioned above, one of the best ways to diversify your investments is to buy various types of real estate. But what if you don’t know where to start?

The good news is that the industry has been doing an “economic evaluation” of proposed projects for years.

In essence, developers put together a proposal for how much money the project would make to get a stamp of approval from the government.

So if you’re interested in investing in real estate but don’t know where to start, an economic evaluation is a great way to understand how certain projects perform in different parts of the country.

The more information you have, the better equipped you will be to make a sound investment decision.

Invest In Buy and Hold Real Estate

In the crash of 2008, I made LOTS of money by investing in real estate for passive income and monthly cash flow. I do this by making sure I make $250 minimum per month in passive income from every rental property I purchased.

Now, those properties that I bought over a decade a go are making me $400, $500, and even $1000 a month in passive income.

This is because over time rents go up but my expenses stay the same.

Now, with a recession looming over us and an economic crash being possible, will you be ready to capitalize on the very thing that will crush most people?

The recent podcasts I've been on all have the same concern. “What's happening to the real estate market”?

Honestly, things are going to be bad for a lot of people. But, if you are prepared, you will be able to profit from the recession.

Buy and Hold Real Estate

You want to buy real estate that will make you money over time in the form of passive income.

Monthly cash flow is when your expenses are lower than your profits. That difference is your passive income.

The great thing is that your expenses are fixed and you income increases over time.

When you buy one rental property, you begin to make passive income. That one property makes you money while you sleep.


 
FREE Making Money with Real Estate Investing Course

Get the real estate investing course for FREE and Subscribe to the MPI Newsletter with loads of investing tips, advice, and advanced strategies for investing in real estate.

 

Know When To Buy And When To Hold

Depending on your risk appetite and investment goals, the best time to buy and sell real estate are different.

For example, if you’re willing to take on more risk, you may want to purchase properties when interest rates are low, and demand for property is high.

On the other hand, if you’re more conservative, you may be better served by waiting until interest rates rise before buying a home.

This is another important factor to consider as you decide when to buy and sell: How Much Do You Want To Pay For Real Estate?

If you’re starting as an investor, you may be tempted to pay a high price for a home simply because you can.

Resist the urge to overpay for real estate and invest instead in things that will increase in value over time, like stocks or property.

The best way to do this is to use a real estate calculator to estimate the value of your home and the cost of improvements.

Once you have this number in mind, budget accordingly, and don’t overpay for real estate.

Passive Income From Rental Properties Is How Real Estate Investors Make Money Even When The Market Crashes.

You need to be proactive if you’re looking to make money from your rental properties.

Passive income from your properties can be a great way to supplement your income and help you stay afloat during tough times.

Here are a few tips to help you get started:

  • Research the market conditions and determine whether or not you can make money from your rental properties. This will help you determine whether or not you can make a living from your property.
  • Build the business first and hire experts in your area. They will be the ones to make you money each month in passive income while you relax.
  • Hire the right property manager to manage your property. They are the best way for you to stay out of the business and have others do the work for you.
  • Make sure you use the correct techniques when marketing your properties. This will help you to get more leads and make more money from your rental properties.
  • Save all your passive income from the properties to buy your next property. Like a snowball, the farther down the hill it goes, the larger it gets. The more properties you buy, the larger your passive income is and the more money you make.
  • Always be prepared for a market crash. And when it does crash, buy more properties to make you more money in passive income.

Diversify Your Real Estate Portfolio, 80% For Long-Term Rental Properties and 20% For Mid-Term or Short-Term Rental Properties

If you’re looking to diversify your real estate portfolio, many great options are available. For example, you can invest in 80% long-term rental properties and 20% short-term rental properties like Airbnb.

This way, you’ll be able to use your properties for a variety of purposes, from hosting weddings to renting out apartments.

By choosing these options, you’ll be able to provide more stability for your investments and increase your chances of making money over the long term.

Additionally, by diversifying your real estate portfolio, you’ll be able to access a broader range of potential rental properties that are perfect for your needs.

So whether you’re looking for a place to call home for a while or just starting, diversifying your real estate portfolio is a great way to get started.

Be Prepared For An Economic Downturn!

You can learn how to prepare, invest, and manage every market cycle with Master Passive Income.

Get the book and course for free! For access to these freebies, you can also text RENTAL to 33777.

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