Avoiding Market crash effect on property loans

[Amr Swalha]

Hello there!

What to do if the market crash and you have property that is mortgaged? Can you minimize the effect of the crash so your property will not go underwater like what happened in 2008?

[Matt Hurley]

Best answer given to me by investor friends who survived that era, don’t over leverage and be ready to change exit strategies. Basically, don’t get a heloc for every available cent of equity you have on in a place. If you’re a flipper, don’t chase your property down as it loses value, just turn it into a rental or sell at break even if value plummets.