If you’re ready to build your financial wealth, consider the following
There are many ways to grow wealthy during a recession as a real estate investor. But before we dive in, you’ll want to make sure that you have the right tools, systems, and resources available to you to build your real estate investment business. At RealEstateInvestor.com we’re an all solution provider that’s proud to equip real estate entrepreneurs with everything they need to succeed and grow their business. You can learn more about our suite of innovative products and services here.
Our founders of RealEstateInvestor.com are real estate investors themselves who have both been through recessions in the past. They created an amazing video that talks about everything you need to do to make your real estate business work for you this year. You can watch their training video on this here on YouTube for free.
Ready to learn some tips for maximizing your business and potentially growing rich during a recession? Keep reading for some ideas…
Utilize Your Equity
I don’t mean buying that luxury car you’ve had your eye on, or taking that tropical island vacation when travel bans are lifted. Those things are great but hold onto those thoughts for now.
Instead, consider leveraging the equity you have in an existing property and use it toward the investment of another. By taking advantage of low home equity loans, you can grow your portfolio with an additional investment property and income.
Before you sign on the dotted line, make sure you find the right property that fits your needs and your budget.
Take Advantage of Lower Interest Rates
Interest rates drop when the economy is down. We’ve already seen proof of this with the cuts The Fed made in March 2020. Since banks depend on loans to make money, lower rates will make borrowing more enticing to investors, making both parties happy.
These rates won’t last for long, so be sure you don’t let low rates slip by.
Homeowners that are unable to pay their mortgage because of a job loss eventually lose their house to their bank or lender. While this is unfortunate for them, this opens an opportunity for a real estate investor to swoop in and save the day by helping the seller out by buying their home quickly before the bank has to take it back.
What does this mean for real estate investors this year?
Properties can often be found at lower prices, sometimes at a fraction of their pre-recession value. Investors taking advantage of these offers are positioned to gain equity quickly, once the market rebounds and values return to their normal levels.
Other Economic Fallouts
Home defaults aren’t the only thing that rises when the economy drops…
Divorces increase during economic hard times.
Financial instability during a recession often puts strains on family life causing marriages to end.
What does that have to do with real estate investing during recessions?
As couples split, assets need to be divided, giving opportunities for investors to help with this, especially if property owners are eager to sell fast.
Speaking of owners that want to sell fast, have you ever considered buying a property whose owner recently passed away?
As you can imagine, the loss of a loved one and planning a funeral can be emotionally overwhelming. Deciding what to do with Grandma’s old house can be too… Especially if there are multiple heirs involved in the estate.
Unless the family had a personal connection and just can’t part with Grandma’s house, most look to sell fast and would consider a lower price to make that happen. After all, they will have funeral costs and lawyer fees to tend with as well.
This provides another chance for real estate investors to help out sellers in their time of need, by providing them with an instant offer and a stress-free sales process.
Keep Your Long-Term Plan in Sight
Regardless of where you are today, thinking long-term is always the smartest move. After all, economic cycles of ups and downs will occur again and again. Markets will return and grow, and economies will experience recessions.
All of these things are about as predictable as a sunrise…
As unemployment rises during a potential coronavirus recession, more people will look for rental units, and demand for those properties will go up. Making this a great time to invest in rental units and buy and hold real estate.
Planning now for your future will put you at an advantage later.
As many of us are moving into longer stay at home orders, now is the exact time when you should be planning out your strategy for the future. There will be a lot of opportunities that will rise for a short time and disappear before you know it…
Will you be prepared?
Check out our article on 7 strategic business moves that you can start making right now to get prepared.
Also, stay on top of new industry trends, free training, and networking in our REI Beacon Facebook group. It’s 100% free, and the value being dropped there is unlike anything offered by us before.