What do investors do during recessions?
Home prices dropped in 2008 and I heard a story from a colleague of mine that they lost their house because their home was not enough collateral for the loan. So my question to all my BRRR and 2008-era investors - how did you exit or hang on to your properties? You have to leverage a lot of real estate so what happens when your home prices drop under the borrowed amount?
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JD Martin
Property Manager
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Most of us retire to Florida and play shuffleboard :)
Anyway, yes you asked two different questions. The one in your title, most savvy ones just wait around for those on the edges to start falling off, and then picking up their properties at fire sale prices as mush as possible/practical. As for value vs. leverage, that only matters if you can't make your note. If you can't, then you're one of the edge people above that sells your investment at fire sale prices.
Anyway, yes you asked two different questions. The one in your title, most savvy ones just wait around for those on the edges to start falling off, and then picking up their properties at fire sale prices as mush as possible/practical. As for value vs. leverage, that only matters if you can't make your note. If you can't, then you're one of the edge people above that sells your investment at fire sale prices.
- JD Martin
- Podcast Guest on Show #243
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