What are you doing to prepare for the next downturn?

3 Replies

When you say, "we all know", are you implying that what you say is Gospel Truth?

My prep consists of continuing what I'm doing now.  

If you analyze properly, and buy based on that analysis, any "downturn" should impact you less than others, and in fact, set you up to be empowered during that "downturn".

The Risk Controls you put in place, and follow, for the "upturns", should have the same control during a downturn.

@Tyler James That's not much of a prediction. 

E.g. I can predict with 100% certainty that in the next 1,000 years we will have a catastrophic war and/or economic failure that will ruin a ton of people. 

But I can't live my entire life in fear of these events. 

Similarly as @Joe Villeneuve has pointed out. 9/10 times you will be fine as long as you have a solid strategy with a margin of safety and manageable leverage. Worrying about things beyond our control will just lead to additional stress and serves no purpose.

P.S. Repeating Rod Khleif's line doesn't work in your case. He is an experienced investor with a track record who's talking about a bigger point - over-leveraged assets bought at inflated prices.

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

We hate spam just as much as you