BP Podcast 188: Using 20+ Years of Studying Market Cycles to Buy Low & Sell High with David Gudmundsen


Is the real estate market about to collapse? Do we have 10 more years? What’s the future hold? While no one can definitively answer these questions, today’s guest has some keen insight into timing the market, allowing you to “buy low and sell high.” Today, we’re excited to introduce you to David Gudmundsen, an investor who’s been in the game more than 20 years and who’s seen numerous peaks and valleys — and who has learned how to ride the wave. With more than 250 deals under his belt, David is an incredible resource for anyone looking to grow their portfolio — or preserve it — during times of uncertainty. Unless you know exactly where the real estate market is headed next, don’t miss this powerful and entertaining episode!

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We just waRealtySharesnted to give a shout out to our podcast sponsor on today’s show: RealtyShares. RealtyShares is a crowdfunding platform that allows you to invest in professionally managed properties without leaving your living room!

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In This Episode We Cover:

  • Why David chose real estate and his first property
  • How he got his first property by assuming a loan
  • How he reached a level of buying a property a month without a college education
  • How Monopoly inspired him to invest in real estate
  • How to balance learning and actually making deals
  • What exactly a wrap is
  • Thoughts on contracts for deeds
  • How many deals he has made
  • What you should know about seller carry back
  • What walking the mortgage is
  • Insight into market cycles and crashes
  • How to read the signs of market cycles
  • What we can learn from the boiled frog analogy
  • What “buying right” really means
  • The importance of not always doing the things others are doing
  • Why it’s important to join real estate club meet ups
  • A couple of his worst and greatest deals
  • And SO much more!

Links from the Show

Books Mentioned in this Show

Tweetable Topics:

  • “I can never win at Monopoly unless I roll the dice and I buy houses.” (Tweet This!)
  • “A good borrower can make a bad loan good, and a bad borrower can make a good loan bad.” (Tweet This!)
  • “Forget location, location, location. It’s all about buy low and sell high.” (Tweet This!)
  • “You just look at what exactly the herd is not doing.” (Tweet This!)

Connect with David

Show Preview

About Author

Thanks for checking out the BiggerPockets Real Estate Investing & Wealth Building Podcast. Hosts Joshua Dorkin & Brandon Turner strive to bring top-notch educational content and interviews to our listeners -- without the non-stop pitch prevalent around the industry. With over 80,000 listeners per show, the BiggerPockets Podcast has become the biggest real estate podcast in the world. But don’t take our word for it. We’re the top-rated and reviewed real estate show on iTunes — check it out, read the reviews on iTunes, and get busy listening and learning!


  1. Ugwu Uche

    Great podcast, I find it interesting how when people talk about the state of the RE industry in the past, you see policies and systems that you would love to be able to take advantage of today (i.e. no doc loans, assumptions, etc etc) I wonder if ten years from now we will be talking about today’s market the same way. Looking at how low the interest rates are or being a sellers market or whatever advantage you can think of today. Maybe they will regulate wholesaling in the future and we will talk about how it was so easy then (although today it doesn’t seem easy).

    I would love to learn more about market cycles on a national and local level. Being an agent I guess the mls and market reports are the best place to study. Anyone have any tips on keeping current with market trends or how to spot highs and lows. I imagine like Josh said it is probably similar to trading securities.

  2. Ashley W.

    Such an informative podcast. It’s always nice hearing from people that have been in the game for a long time, but not stuck in any one way on how to do things. That’s one of the drawbacks of the older “gurus”, they are set in only ONE WAY being the way to go, whether or not it fits your criteria. Thank you Mr. Gudmundsen!

  3. Jeb Brilliant

    Such a great episode, I am curious about one thing. Dave, what do you do with your 60 properties? You said you sold a bunch but still have 30 or 36? Do you sell them all and then live off of what??? Or do you keep the ones you don’t owe anything on?

    I was just thinking… Keep the dumps that pay rent every month but will never appreciate and sell the B class that has appreciated and make your money to use during the next down turn.

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