Recession-Proof Real Estate Investing (2025 Guide)
Published: 2025-05-09
Status:
Analyzed
Published: 2025-05-09
Status:
Analyzed
Predictions from this Video
Incorrect: 0
Prediction
Topic
Status
During the next recession, banks will stop or significantly reduce lending, making it hard to obtain lines of credit, mortgages, or other loans.
"What we learned back in 2008, while good in theory, the reality is banks stop lending during a recession. Credit gets a whole lot tighter. It's hard to get lines of credit. It's hard to get mortgages. It's hard to get credit cards and other types of loans."
Pending
During an upcoming recession, rental growth is expected to flatten or rents may slightly decrease, and vacancy rates are very likely to increase.
"Keep in mind during a recession, it's very realistic that we see rents become a lot flatter. So basically, we don't see rental growth. We may even see rents go down a little bit. And it's also very probable in in most cases when you have a recession that vacancies start to go up."
Pending
Multi-family real estate deals are definitely expected to emerge in the next couple of months.
"I personally think there's going to be deals coming. We'll see about residential. I think in multif family there's definitely going to be deals coming in the next couple months."
Pending
During a recession, people tend to move from small to larger markets for jobs, causing growth in smaller markets to stall for years.
"During recessions people tend to move from small markets to larger markets because that's where the jobs are. And so if you're investing in a small town... that that path of progress may stall and it can stall for years at a time."
Pending
During a recessionary period, real estate appreciation is unlikely for a little while.
"when we're when we're heading into a recessionary period, when the market's going downwards, cash flow is is better than appreciation because we're probably not going to see appreciation for a little while."
Pending
During a recession, there will be significantly more tenant turnover due to job losses, reduced hours, and wage cuts.
"during a recession, you're going to have a lot more turnover. And this is this is pretty common sense. People are losing their jobs. They're getting their hours cut. They're getting their wages cut. They have to move."
Pending
If a tenant is lost during a recession, it will be much harder to find a new one.
"if you do lose them, it's going to be much harder to find a new tenant if we're in a recession."
Pending
Real estate values are not expected to drop by 20%.
"I don't think we're going to see a 20% drop in real estate values"
Pending
During a recession, there will be significantly fewer real estate buyers than expected.
"if we head into a recession, you're going to have a whole lot fewer buyers than you would expect"
Pending
It is no longer possible to make mistakes in house flipping and still profit.
"for for much of the last 10 years, you can make mistakes all along the way and still make money. um that's not the case anymore."
Pending
When the real estate market starts to soften, a large amount of inventory will quickly hit the market as homeowners list their properties faster and drop prices to sell quickly.
"you're going to have a lot of inventory start to hit the market all at the same time... And if they see the market start to soften, they're going to list their houses more quickly. They're going to drop their prices quickly to get them sold quickly."
Pending
Multifamily real estate deals are predicted to become available within the next 2-3 months.
"I think in multif family there's definitely going to be deals coming in the next couple months."
Pending
Real estate markets are predicted to experience slowdowns in an increasing number of cities.
"city by city, you're going to start seeing this, I think, in more places."
Pending
Real estate appreciation is unlikely for a short period during an economic downturn.
"we're probably not going to see appreciation for a little while."
Pending
Real estate values are predicted not to drop by 20%.
"I don't think we're going to see a 20% drop in real estate values"
Pending
A significant increase in real estate inventory is predicted to hit the market concurrently once the market starts to soften.
"When that happens, you're going to have a lot of inventory start to hit the market all at the same time."
Pending