How to make money in realestate if the bubble bursts?

[Jonathan Sikes]

Hello everyone,

I'm very curious what strategies people are planning to use, if the housing markets tank again, like in 2009. I know many of you were investing during the last recession and were able to ride the wave. Any of you have ideas on how to be succeasful if the market crashes? Obviously, "buy everything you can with cash and wait" wouldn't be that helpful. 

[Tyler Gibson]

Originally posted by @Jay Hinrichs:

Originally posted by @Tyler Gibson:

@Jonathan Sikes If the buubble bursts then access to capitol from banks will become a challenge. I have heard many investors advice getting high limit credit cards now, opening Helocs and other lines of credit now while banking institutions feel safe giving it to you. Of course you don't want to use these right now but pay the fees required to keep them open and active. This way when it happens you can get the cash you need to do all the deals you want. Also I would build relationships with private individuals that have capitol start showing them you know what you are doing in the RE game so that when the opportunity is there to pick up cheap properties you got the means to do it. I think I would go the route of scooping up as much on the cheap as I can and do seller financing. This is what Robert Kiyosaki (rich dad poor dad) did in 08-09. He was buying the foreclosures dirt cheap and selling them seller financing for 2/3 of what they were worth 2 years before. Buyers were happy to get a cheap house and since it was seller financing they were able to get a loan which was hard to do at that time. 

Tyler do keep in mind in a true bubble burst the FIRST thing to get frozen and called are HELOC's followed by high limit credit cards LOL..

in a true bubble burst situation its cash in the bank that is yours.. and or putting together investor groups who have cash in IRA's that sort of thing.. but then everyone is scared and its hard to raise investor cash.. And investor loans forget about those during a bubble crisis they are not offered even if you qualified for one if they don't offer them what good does it do.

for those positioning themselves for a true bubble burst best to get your cash ready.. 

I hear you Jay. I was trying to provide some other answer than "Cash buy everything" since the poster specifically mentioned wanting something other than that response.