Who’s Ready for a Recession 2020?

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

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

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  • Jazlynn Gibbs
    OP
    Flipper/Rehabber · GA · Member since 2019 · 8 posts · 16 votes
    7y
    Originally posted by @Jim K.:

    At least I asked about Armageddon in the discussion I started.

    Thinking Outloud?

    1Reply
  • Jazlynn Gibbs
    OP
    Flipper/Rehabber · GA · Member since 2019 · 8 posts · 16 votes
    7y
    Originally posted by @Jaron Walling:

    "What I do know, is that if we do not act soon, it is our children and our grandchildren who will have to pay the price." 


    1Reply
  • Ola Dantis
    Multifamily Syndicator · Houston, TX · Member since 2016 · 1k+ posts · 2k+ votes
    7y
    Originally posted by @Jazlynn Gibbs:
    Originally posted by @Jaron Walling:

    "What I do know, is that if we do not act soon, it is our children and our grandchildren who will have to pay the price." 


    If you look closely in the background, all you see is Real Estate still standing strong amidst the armageddon lol 🤗

    3Reply
  • DJ Berry
    Real Estate Agent · Niantic, CT. · Member since 2015 · 11 posts · 7 votes
    7y

    @Jazlynn Gibbs if you look at the history of recessions home values do not always fall, and in some cases rise. The 2008 recession impacted the real estate on such a large scale because the recession was driven by in a large part due to improper lending practices and bad mortgages. This is not the case right now. Study the history of US economics and past impacts of recessions on the real estate market and you will be surprised. Don’t feed into the media or rumors, rely on data and history- it always seems to repeat itself.

    2Reply
  • Jackson Hulgan
    Rental Property Investor · Albertville, AL · Member since 2019 · 18 posts · 11 votes
    7y

    @Jay Hinrichs

    Any president has very little to do compared to the entirety of the economy. I wouldn’t blindly trust Trump to keep the market afloat just because he’s the president.

    1Reply
  • Joseph Walsh
    Brookfield, WI · Member since 2016 · 191 posts · 108 votes
    7y

    No, the media seems to be "waiting" for one, but the indicators aren't there.  There could be short term blip, and rising mortgage rates if a Democrat wins, but it would likely be a short term slow, not a recession.  And that is just based on historical reactions the the assumption that Democrats are hostile to business and banking, which isn't always the case.  It's also always the case that even if they are, it takes a couple years to get any of those kinds of changes through congress, if at all.  That said, if there is one, we're ready.  A recession would help scoop up some more properties :D

    1Reply
  • Account Closed
    Rental Property Investor · Brooke Park Drive · Member since 2018 · 1k+ posts · 2k+ votes
    7y

    People asking this think a recession means another 2008 that was once in a life time

    4Reply
  • TIm Harstead
    Property Manager · Chicago, IL · Member since 2016 · 69 posts · 43 votes
    7y

    Was watching a Dave Ramsey video on the topic, no one knows when it will happen but a recession is defined as two quarters in a row with a drop in GDP we have not yet had one so we are at least 6 months away with nothing actually pointing to it yet

    1Reply
  • Bobby Shell
    Investor · Fort Collins, CO · Member since 2018 · 165 posts · 127 votes
    7y

    @Jazlynn Gibbs

    Please and thank you! After these tweets today let’s make this thing crash!

    I feel sad saying that for those retiring, but we are long overdo!!!!

    1Reply
  • Bret GillespiePro Member
    Rental Property Investor · Wilmington, NC · Member since 2018 · 26 posts · 13 votes
    7y

    @Jazlynn Gibbs fake news!

    If mainstream media is able to make that actually happen, make sure you capitalize on it...calculated risk takers will come out on top!

    🤙🏼🤙🏼

    Dr. Bret Gillespie PT, DPT

    0Reply
  • Syed H.
    Developer · NY/NJ/PA · Member since 2018 · 758 posts · 935 votes
    7y

    While no one should hope for a recession, I am looking forward to some unrealistic/undisciplined buyers realizing how bad their purchases were. This happens every time. Some people pay insane numbers and they never make how much they thought and then run away from investing until the next top of the cycle. 

    0Reply
  • Tommy Quach
    Seattle, WA · Member since 2017 · 10 posts · 2 votes
    7y

    I have 3 SFH rentals in the Seattle area and was trying to hold onto them forever as they cash flow well. Would you try to sell off properties before the "recession" hits or would you hold on and try to continue to cash flow? I say try just in case people lose their jobs and can't make rent payments.

    0Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    7y
    Originally posted by @Jackson Hulgan:

    @Jay Hinrichs

    Any president has very little to do compared to the entirety of the economy. I wouldn’t blindly trust Trump to keep the market afloat just because he’s the president. 

    Ya I know let me re state that.. all politicians in an election year will do what they can to not have the economy be a stumbling block to re election when possible.

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    1Reply
  • Jackson Hulgan
    Rental Property Investor · Albertville, AL · Member since 2019 · 18 posts · 11 votes
    7y

    @Jay Hinrichs

    I can definitely agree with that. I’m sure that the economy will be a huge talking point in the coming election.

    0Reply
  • Linda D.
    Bronx, NY · Member since 2014 · 148 posts · 34 votes
    7y

    @Jazlynn Gibbs

    There is not going to be a recession - unless the media talks everyone into it!

    0Reply
  • Michael HaasBusiness Member
    Real Estate Agent · Redmond, 🌧️ Seattle Investor-Agent | 🤑 Helped 400+ Clients Invest in Real Estate | 🏘️ Owns 23 WA Rentals & Airbnbs | 🏗️ Built 5 DADU's | 📈 You Can Do It Too · Member since 2016 · 724 posts · 3k+ votes
    7y
    We're in Seattle as well - you look young like I am Tommy, I'd stay the course and keep buying and holding. You're in a great market, and assuming your properties are cash flowing a minor recession won't be an issue. Cheers!

    Originally posted by @Tommy Quach:

    I have 3 SFH rentals in the Seattle area and was trying to hold onto them forever as they cash flow well. Would you try to sell off properties before the "recession" hits or would you hold on and try to continue to cash flow? I say try just in case people lose their jobs and can't make rent payments.

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    3Reply
  • Tommy Quach
    Seattle, WA · Member since 2017 · 10 posts · 2 votes
    7y
    Thanks Michael, 31 so not too young anymore. That's what I am planning on. Hoping to keep adding more to the portfolio every year.

    Originally posted by @Michael Haas:
    We're in Seattle as well - you look young like I am Tommy, I'd stay the course and keep buying and holding. You're in a great market, and assuming your properties are cash flowing a minor recession won't be an issue. Cheers!

    Originally posted by @Tommy Quach:

    I have 3 SFH rentals in the Seattle area and was trying to hold onto them forever as they cash flow well. Would you try to sell off properties before the "recession" hits or would you hold on and try to continue to cash flow? I say try just in case people lose their jobs and can't make rent payments.

    0Reply
  • Joseph Lopez
    Investor · Member since 2018 · 32 posts · 59 votes
    7y

    I've been hearing about a possible, maybe, perhaps, holy moly its coming ....recession for every year straight since 2012.  As a real estate investor, one needs to be prudent in our business practices and follow due diligence on our investments so we will be actual real estate investors in projects rather than speculators.  I'm not concerned about what the media thinks and I don't ask my dry cleaner for real estate advise.  The reality is that if you are buying and investing in projects adhering to proven tactics and strategies you will withstand with lower risk any depression/recession.  Any investment involves certain elements of risk at its base, however we can leverage risk with proper reserves, passive income and equity in projects.  With that said, I normally buy more properties at a lower discount when we are experiencing troubled times so if it should occur, i'm ready to buy more properties. 

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

    @Dina Abbott

    Gold has seeing responsive buying this past year while $vix has risen.

    0Reply
  • Paul Mass Jr
    Los Angeles, CA · Member since 2018 · 1 post · 0 votes
    7y

    @Jazlynn Gibbs Absolutely. The difference this time will be a consumer unsecured credit/inflation recession. Banks got bailed out last time, this time consumers need the bailout. Govt debt is way out of control, too. Get your popcorn and strap in, it’s gonna be wild.

    0Reply
  • Angelo Mart
    Professional · Parsippany, NJ · Member since 2013 · 384 posts · 262 votes
    7y

    Some Areas of NJ are extremely overinflated and valued even higher than the height of the market which concerns me from a real estate appraiser's standpoint.

    0Reply
  • Chris Ehlert
    Tucson, AZ · Member since 2016 · 36 posts · 17 votes
    7y

    There are alot of great investors (real estate) on here. With a ton of knowledge, so I totally don't understand their remarks on here. The other times there was a recession talk they had some great points and there wasn't all these caution signs. Truth be told I have only flipped 2 houses, but....I have been studying the market and everything I could since 2008. I was 1 of those people that didn't file bankruptcy but take on extra jobs to keep my house and my kids way of life. We have already hit the top we can look down for a while...If Trump softens the trade the trade war and the Fed Loews interest rates we have about 9-12. Months. The orange bafoon loves the attention, so I am sure we'll get there, but we are here and nobody can fix it. Plan accordingly...

    0Reply
  • Marisa R.
    Developer · Atlanta and Detroit · Member since 2018 · 601 posts · 821 votes
    7y

    Damn, if only I could afford one of these

    https://www.google.com.au/amp/...

    0Reply
  • Edward Robinson
    Springfield, IL · Member since 2017 · 23 posts · 12 votes
    7y

    I don't think anyone really knows what's going to happen next year. I, for one, don't have 2020 vision

    (Had to make the obvious joke when I saw no one had. Sorry not sorry)

    Personally, my goal is to invest in such a manner that I really wouldn't have to worry about any kind of recession.

    1Reply
  • Account Closed
    Real Estate Broker · Oklahoma City, OK · Member since 2016 · 39 posts · 58 votes
    7y

    @Jazlynn Gibbs, the difference this time is having Trump involved who is super unpredictable. His tariff war is real and I would not underestimate his resolve in bashing China but at the same time Trump is very mindful of US manufacturing and supply chain problems. His bark is a lot worse than his bite. As to the effect on real estate investing (recession or not), I don't see a large impact on the middle or low end of the SFR market, which is largely driven by rental demand, so long term rental investors will be fine so long as they maintain their properties and continue to be responsive to their customers (tenants). Flippers will also do fine (recession or not) so long as they continue to buy & sell regularly because prices (buying on the front end and selling on the back end) tend to move together. Lastly, these low interest rates give all real estate investing a significant tail wind (recession or not). All this to say you asked the wrong question. The better question is: what will interest rates do over the next 5 years?

    0Reply
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