Who鈥檚 Ready for a Recession 2020?

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Jay HinrichsBusiness Member
Real Estate Consultant 路 Summerlin, NV 路 Member since 2014 路 45k+ posts 路 66k+ votes
7y

Maybe maybe not.. election year Trump wont let it happen

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  • Michael Justice
    Rental Property Investor 路 Nationwide Remote Wholesaler 路 Member since 2019 路 49 posts 路 10 votes
    7y
    Originally posted by @Jazlynn Gibbs:

    Do you think it will be a Recession 2020?

    Absolutely ,Hate to sound pessimistic but I've been watching what the stock market gurus are saying, They claim it's inevitable that America was predicted to be the next Venezuela !???馃槑

    2Reply
  • James M.
    Rental Property Investor 路 Seal Beach, CA 路 Member since 2016 路 115 posts 路 85 votes
    7y
    Everyday, there is a new topic about this.
    2Reply
  • Jon Segura
    Rental Property Investor 路 Philadelphia, PA 路 Member since 2018 路 42 posts 路 9 votes
    7y

    @Jazlynn Gibbs - contractions are not all bad. just make sure to succeed when economic contractions happens. Buy when others are shy and slow down when others are buying a ton. Just don't dwell and just make sure not to throw the towel. 

    1Reply
  • Michael Morrison
    Flipper/Rehabber 路 Winnipeg, MB 路 Member since 2017 路 8 posts 路 4 votes
    7y

    I'm told by my FA it's us Nucks up here that kept borrowing strong through the down up, and are leveraged above average. Inventory is heavy on the baby boom generation, and those downsizing their properties are going to have some room to the downside to find the bid as a potential higher debt costing is going to keep bids low. At this time time central banks are willing to keep rates low, and are wise to the cracks in foundation. I'm sick of waiting for the crash, but very cautious as I'm a brand new REI about to enter flipping.

    2Reply
  • Joe SplitrockPro Member
    Moderator
    Rental Property Investor 路 Sioux Falls, SD 路 Member since 2015 路 9k+ posts 路 18k+ votes
    7y
    Originally posted by @Michael Justice:
    Originally posted by @Jazlynn Gibbs:

    Do you think it will be a Recession 2020?

    Absolutely ,Hate to sound pessimistic but I've been watching what the stock market gurus are saying, They claim it's inevitable that America was predicted to be the next Venezuela !???馃槑

    If they really believed that, they would be cashing out. Do you realize the state of Venezuela economy and the root cause? I am at a loss to understand how we become the next Venezuela. Care to explain or provide legitimate sources for this theory?

    3Reply
  • Nicolas Thatcher
    Rental Property Investor 路 Austin, TX 路 Member since 2018 路 23 posts 路 9 votes
    7y

    My prediction is that the next crash will originate with a hard Brexit on Halloween night followed by China strongarming their way over in Hong Kong. This, in turn, will lead to a global financial lockdown as both Hong Kong and London are International financial hubs for their respective geographical regions. I'm starting to prepare now- Will you be ready? 

    2Reply
  • Kevin Allen
    Louisville, KY 路 Member since 2015 路 166 posts 路 83 votes
    7y

    I didn鈥檛 read all the replies but if I knew the answer I wouldn鈥檛 be looking for any deals because I鈥檇 be so stinking rich I could t stand it. The answer is no one knows. Sometimes it goes up and sometime it goes down.

    2Reply
  • Michael Justice
    Rental Property Investor 路 Nationwide Remote Wholesaler 路 Member since 2019 路 49 posts 路 10 votes
    7y

    @Kevin Allen what's a recession???馃槀

    2Reply
  • Dina Abbott
    Interior Decorator 路 Orlando, FL 路 Member since 2018 路 16 posts 路 13 votes
    7y

    According to the past trends the yield curve gets inverted prior to the

    recession. That's when long term interest fall and short term interests

    go up. This contributes to everyone's panic, and can potentially cause

    the recession in itself. This happened again last week. The only thing

    that we cannot know is how soon it will come. It could be tomorrow or

    three years from now. Too many factors to consider that we have no

    control over. Stock up on commodities and keep your bills low. This way you can be somewhat recession proof...

    4Reply
  • Jazlynn Gibbs
    OP
    Flipper/Rehabber 路 GA 路 Member since 2019 路 8 posts 路 16 votes
    7y

    KEVIN ALLEN , THAT IS EXACTLY WHAT I WAS THINKING WHEN I POSTED. i HAD JUST FINISHED READING ABOUT THE SUPPOSEDLY UPCOMING RECESSION 2020. I WONDERED IF ANYONE ELSE HEARD...THE NEWS... 馃槀   PEOPLE ARE-SENSATIONALIZING THE HYPE.


    0Reply
  • Maugno M.
    Flipper / Landlord 路 Tyler, TX 路 Member since 2016 路 255 posts 路 126 votes
    7y

    Why does everyone keep posting this same sh** ? lol its getting a little boring. 

    1Reply
  • Alvin Sylvain
    Los Angeles 路 Member since 2018 路 466 posts 路 471 votes
    7y
    Originally posted by @Erik W.:
    The last recession was only correctly identified by a handful of people who specialized in out-of-the-box speculative shorting the market.  Read the book/watch the movie "The Big Short" and you'll see that only 1% of 1% of 1% of 1% had both the ability both to PREDICT and TAKE ADVANTAGE of the 2009 Recession.

    I haven't seen the movie, but it occurs to me that 1% of 1% of 1% of 1% just got lucky. They bet on 00 and won.

    A different 1% of 1% of 1% of 1% could just have easily bet on 35 and been the ones who got lucky. They may get the next one.

    My point is, in this great big world, all sorts of people put bets down on all 38 positions of the wheel. No number remains uncovered. Some choose a number with good reasons, some with bad. With every number holding a bet, somebody is guaranteed to win. Then write a book about how smart they were.

    1Reply
  • Brent Paul
    Rental Property Investor 路 Shakopee, MN 路 Member since 2015 路 985 posts 路 374 votes
    7y

    Seems to me like a lot of unneeded publicity in the media and way overhyped.  I'm not worried my units will still rent just fine. And I can take a hit in cash flow and still be ok.

    2Reply
  • Stephen Shelton
    Debary, FL 路 Member since 2017 路 110 posts 路 113 votes
    7y

    We can't even trust the media to tell us what is happening right now, and even when video proof exists that they're lying they're still prone to either hold onto the lie or quietly forget about it.

    Anyone else remember the frequency of news articles from 2009 to 2016 discussing some negative figure of the economy (Unemployment, manufacturing, GDP, etc) and how it was usually accompanied with the word "unexpectedly"?

    "Journalists" have no credibility whatsoever when it comes to predicting the future of the economy. I'd trust my cat or a magic 8-ball first.

    2Reply
  • Tony Blasioli
    Rental Property Investor 路 Denton, TX 路 Member since 2018 路 37 posts 路 44 votes
    7y
    Originally posted by @Brent Paul:

    Seems to me like a lot of unneeded publicity in the media and way overhyped.  I'm not worried my units will still rent just fine. And I can take a hit in cash flow and still be ok.

    Right, buy and holds are doing fine. Better than fine, in my opinion. Flips, not so much. I live near Dallas. Our flip market is a train wreck.

    1Reply
  • Tony Blasioli
    Rental Property Investor 路 Denton, TX 路 Member since 2018 路 37 posts 路 44 votes
    7y
    Originally posted by @Kevin Allen:

    I didn鈥檛 read all the replies but if I knew the answer I wouldn鈥檛 be looking for any deals because I鈥檇 be so stinking rich I could t stand it. The answer is no one knows. Sometimes it goes up and sometime it goes down.

    I agree, but there are manipulators who cause the phenomenon, namely the Fed, the media, and the Democrat Party, who right now stand to gain politically from as painful a recession as they can inflict. Now is a time to buy in my market (Dallas). 

    1Reply
  • Billy Fernandes
    Rental Property Investor 路 Collinsville, TX 路 Member since 2019 路 1 post 路 2 votes
    7y

    @Jazlynn Gibbs if everyone thinks there is going to be a recession it will cause a recession. If everyone becomes so frighted that the economy is going to crash it will. Why? Because naturally if the majority of people anticipate the economy slowing they will stop spending. Which puts us into a recession naturally. Keep you spirits high, invest,spend responsibly, and you will be fine.

    2Reply
  • Billy Smith
    Shawnee Mission, KS 路 Member since 2016 路 719 posts 路 313 votes
    7y

    Always a topic on folk鈥檚 minds, from past recessions we can look back and get a snap shot of how it might play out.

    Lots of over leveraged folks could falter if the price of rent has to fall.

    There still seems to be a lack of supply of affordable S.F.H in the market that may keep prices firm.

    1Reply
  • Tony Blasioli
    Rental Property Investor 路 Denton, TX 路 Member since 2018 路 37 posts 路 44 votes
    7y
    Originally posted by @Billy Fernandes:

    @Jazlynn Gibbs if everyone thinks there is going to be a recession it will cause a recession. If everyone becomes so frighted that the economy is going to crash it will. Why? Because naturally if the majority of people anticipate the economy slowing they will stop spending. Which puts us into a recession naturally. Keep you spirits high, invest,spend responsibly, and you will be fine.

     If only it were that simple. People don't stop investing for no reason. There are events and market manipulations that cause the market to lose confidence and corporations and fat cats to stop investing.

    The Fed raised the prime eight times in two years to dump a glacier on a red hot economy. They claimed, as always, that they were fighting inflationary pressures, which didn't exist. It finally worked. Way to go, Fed, you have destroyed a booming economy. They lowered the prime last month to avoid criticism, but like President Trump said (paraphrase), 'It's too late now. You have killed the economy.' 

    The Fed is nothing more than a tool for politicians to manipulate the economy. Abolish the Fed! Let the market run itself.

    2Reply
  • Amanda R. Barlow
    Member since 2019 路 20 posts 路 5 votes
    7y

    @Jazlynn Gibbs I like this question. I have my single-family home on the market now in hopes to sell before winter. I plan on taking that cash renting through the winter and looking for an investment property in the spring. Would anyone take a look at my listing and give me thoughts. Should I take it off and wait till spring to sell? Or should I sell now and go along with my plan of throwing the cash in the bank. The property is listed on all the normal website Zillow etc. 221 Linden St. in Fall River MA. I appreciate any feedback!

    I am hoping no recession but if so I plan on buying multi family so I can live in and rent out, is this a good plan? It鈥檚 my first time so any feedback is helpful as long as it鈥檚 done in a positive way!

    3Reply
  • Wayne Woodson
    Investor 路 Nashville, TN 路 Member since 2009 路 483 posts 路 228 votes
    7y

    Yes! Sell me your house now because next year it will be less than 50% of what it is worth. I can pay all cash and close quickly.

    1Reply
  • Account Closed
    Contractor 路 San Diego, CA 路 Member since 2018 路 432 posts 路 221 votes
    7y

    @Jazlynn Gibbs no I don鈥檛 think so. I think it will be a boom 2020. The Bible says pride comes before a fall, so let鈥檚 all stay humble and love our neighbor and love God first and we鈥檒l be blessed! God can bless you in any market!

    2Reply
  • Al Pat
    Rental Property Investor 路 Atlanta, GA 路 Member since 2016 路 325 posts 路 253 votes
    7y

    @Jazlynn Gibbs if and when it does happen, it all depends on the magnitude. With recession comes job losses and tenants who used to afford $1200-$1300 will no longer can afford it and will look for $800 units, pushing those people in that range down to less than $600 range. Many investors who are buying their properties with $200 cash flow per door will be swizzled and on HVAC or water heater failure away from going into negative cash flow. If they can afford it, good for them or else they will be out to sale their investment.

    My units that bring in $1300-$1400 range today, in stable blue collar neighborhoods were bringing in $850-$950 at that time. It lasted like that until 2016. If you entered in the investment at right time and right price, you can and will make it.

    Bottom line, recession is NOT an opportunity for everyone but may be for select few, who has large cash reserve to scoop up good properties in all cash transactions. Bank will be very skeptical of investment properties in that market.

    4Reply
  • Jazlynn Gibbs
    OP
    Flipper/Rehabber 路 GA 路 Member since 2019 路 8 posts 路 16 votes
    7y
    Originally posted by @Al Pat:

    @Jazlynn Gibbs if and when it does happen, it all depends on the magnitude. With recession comes job losses and tenants who used to afford $1200-$1300 will no longer can afford it and will look for $800 units, pushing those people in that range down to less than $600 range. Many investors who are buying their properties with $200 cash flow per door will be swizzled and on HVAC or water heater failure away from going into negative cash flow. If they can afford it, good for them or else they will be out to sale their investment.

    My units that bring in $1300-$1400 range today, in stable blue collar neighborhoods were bringing in $850-$950 at that time. It lasted like that until 2016. If you entered in the investment at right time and right price, you can and will make it.

    Bottom line, recession is NOT an opportunity for everyone but may be for select few, who has large cash reserve to scoop up good properties in all cash transactions. Bank will be very skeptical of investment properties in that

    This is the most comprehensible response, Thank you Al Pat

    1Reply
  • Account Closed
    Rental Property Investor 路 Odessa, FL 路 Member since 2017 路 145 posts 路 113 votes
    7y

    I'm taking the dollar cost averaging approach to investing in RE. Market high ? I buy slowly, Market low ? I'll buy more.

    On my personal finances I am frugal with my spending. I don't buy stuff I don't need and try to save as much as possible. Everybody around me buys a bunch of stuff they don't need and end up selling it in a garage sale the very next year. Golf carts ? No thank you sir, I can walk five minutes in my neighborhood and I'll be just fine.

    0Reply
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