New Year Goals vs. Recession Risk
Time for a new year resolutions. Goals, Teamwork, Actions..
But, the economy has peaked, or pretty close to it. Mortgage rates are pretty sure to go up. All the recession signals are flashing - high flipping, booming real estate seminars, low affordability. Prices may stay flat, or reverse to a declining trend in 2017-2018.
So, how do you all action oriented RE folks hedge the recession risk? This is what I am doing:
1. Focus on BRRRR predominantly..that way if the prices go down, I will be losing my equity-profit only, not my shirt.
2. Aggressively diversify to non-RE asset class. I am opening discounted retail stores which are recession resistant.
3. By end of 2017 get into HML, which is lot less risky. My primary channel will be tech platforms such as realtyshares.
4. Aggressively contribute to 401k, which is bankruptcy protected.
Love to hear what you are doing?