Is Recession looming?

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Is Recession looming?

David Van
Rental Property Investor · Henderson, NV · Member since 2017 · 16 posts · 4 votes

Looking to buy another multi unit. It cash flows well 12% about. I need to put down 25% for this. So far I haven't had much luck doing any BRRRR properties so most of my properties I work hard and save the money to put down. I'm slightly concerned that if I use up a lot of my reserves I won't have anything in case a correction/recession comes or a potential BRRRR. Thoughts?

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Russell BrazilBusiness Member
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Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
7y

There is always a recession looming.

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  • Joel Fine
    Rental Property Investor · Leander, TX · Member since 2018 · 183 posts · 264 votes
    7y

    "It's tough to make predictions, especially about the future." - Yogi Berra

    1Reply
  • Kyler Cook
    Rental Property Investor · Kalamazoo, MI · Member since 2018 · 117 posts · 235 votes
    7y

    @David Van

    Based on all the experts the recession will start about five years ago and continue through the next four years

    0Reply
  • George W.
    Investor · NJ · Member since 2018 · 869 posts · 921 votes
    7y

    Like many have said 50/50 chance of it happening soon no one can pin point exactly when it's gonna happen could be years from now, could be next month. 

    I keep hearing that the farmers in the Midwest are having a very difficult year between floods and China not buying wheat and soy beans. I believe that there was big bailouts already for that from USDA. No farmers no food. 

    Also didn't gold go over 1500oz the other day? When people are nervous they start buying gold. I know a gold guy who was telling me the other day that he actually made more money than ever in 2007-10. 

    There's definitely uncertainties when it comes to the economy, but if you get a good deal on a positive cashflowing property and dont over extend yourself you'll be fine. All the companies that failed in the last major crash all had very high leverage and a lot of people who foreclosed were also over extended.  

    0Reply
  • Dillon Dale
    Real Estate Agent · Owatonna, MN · Member since 2017 · 221 posts · 152 votes
    7y

    @David Van I don't think it's as close as people think, but there's definitely some uncertainty due to the trade war with China. As for now, unemployment is still very low and corporations are doing well. Tough to judge when things will change.

    0Reply
  • Matt R.
    Sherman Oaks, CA · Member since 2013 · 3k+ posts · 2k+ votes
    7y

    As some said a recession is always looming. There are some leading indicators that suggest one is coming in next 12 months or so. I forget which ones exactly but perhaps a 70-80% chance here. Basically the indicators are looking like previous recessions lead ups on a chart. 

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  • Chris Anderson
    Rental Property Investor · Las Vegas, NV · Member since 2018 · 17 posts · 21 votes
    7y

    We are already in the recession. Every recession is started by a different catalyst. They all are gradual and slow and then suddenly...boom. The last one was real estate or the lending really. Stop looking to the real estate market for your answers on whether or not there will be a real estate crash. If people told you the last one was coming before it arrived, you would have skoffed at them the way Congress skoffed at them. We are embarking on a global financial reset, the question is not whether or not it is coming, it is how long can the central banks and governments can keep the fake economy propped up.

    0Reply
  • Account Closed
    Member since 2018 · 214 posts · 175 votes
    7y

    https://wolfstreet.com/2019/08/15/housing-bubble-2-in-san-francisco-bay-area-silicon-valley-is-cooked/

    News just came out today.

    July 2019 data.

    California Bay Area housing price have dropped back to June 2017 level alreasy, prices from two years ago...

    What does it spell out?

    We are at the top of the cycle already, the cold begin spreading...

    0Reply
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