How To Make Money Investing During A Recession

How to make money during a recession. Get a pen and paper. We're going to talk about a lot of ideas. A recession means volatility, which means opportunity. And there's so many things you could do. Cannot wait to share. So again, this is a big one. Get a pen and paper. We've got a lot to talk about. And I am a real estate millionaire. So I got to start with that. I love real estate. And I've lived now that I'm getting a little older through lots of recessions. Since 2008, there's been like four big ones. Obviously, 8, 9, 10, that actually lingered into 11 and 12 before people got recovered. And believe it or not, there's some people who are frozen and paralyzed because 8, 9, 10 hit them so bad, they just couldn't get back up and get going again. So I'd say get up and get going. It's 2022 and we got to go. There's been all sorts of economic volatility right now with volatility becomes huge opportunity. What do you do and what can you invest in a recession? Well, again, anytime the markets are volatile, small businesses are going to either win or lose. They're going to figure out how to navigate. I don't really use that word pivot, but they're going to navigate through these interesting waters. They're going to create new offers, different opportunities, but a lot of them are going to fall down. So local small businesses are going to need money or they're going to need help. And they might even do like a three to five year buyout where you can actually take over. Assisted living facilities are on the rise. That's a great one to look at. If you want a more passive investment, RV parks, Airbnbs. Again, I'm not a huge fan of just one rent check on one single family house. I'd rather have you. And I'm telling all my student pro athletes, you're going to go into a town and play a sport, get a fourplex. You can rent three rooms to your teammates. You live in one. Once you moved from that town to another town, pick it up and you do another fourplex somewhere else or eightplex, and you just start building a portfolio. So when you're done with your sport golfers, you should be doing this. I mean, any of you that have a traveling sport, that is the way I would tell you to do real estate. Again, I can't tell you what to do. Just my opinion, not a financial advisor, just know a lot about money and played the real estate game a long time. How else can you make money during a recession? If you are a good trader, you could be in the markets, not only trading stocks, but crypto. Be very careful. I have so many victims of both of those where they lost a ton of money. They weren't paying attention or they became a crypto millionaire. The whole project fell out or the market fell out. Now they don't have the cash to pay the taxes. Again, like I say to a lot of you, before you make a huge surge of money, make sure you have a conversation with us, where to put the money, which bank account. It's not your personal one. I'll just tell you that. What else can you do to make money in a recession? Well, technology and anything out here on the internet is booming, right? Every business needs better videographers. They need better copy. There's so much you can sell online. There's so many stores you can sell online, get your kids involved. There are so many things you can do. Just look around. Instead of looking down and doing everything yourself, get your head up and say, what can we do, family? Where's the gaps in the market? What do people need? I'll tell you one big final one, which I think is huge. And a lot of people aren't doing it. My son's doing it. My daughter does a little bit of it. It's tutoring. Tutoring because the way the school system has been shifting, a lot of people still staying home. I don't know how many parents need help because they've decided to homeschool. They're not a homeschool parent, right? They don't know how. So you could tutor the parent, the family on how to have better lessons, how to do all of this, how to get engaged. There's so many opportunities for you to make money during a recession. So do prices go down in housing markets during a recession? Yes and no. Depends on the market. And what's different about this one is the political climate is very interesting. I'll just say that. You've got inflation, you have interest rates rising. You've got a little bit different cause of why this one's happened versus really some financial vehicles and mortgage products in 2008, 9, 10 that collapsed that market. So there's different variables of what happens and when it happens. Right now, I can just tell you because we've been producing in the Boise market for a very long time. We were on just, I mean, an almost inverted curve. It was so hot. And then just hardly days on market went, I mean, from not even a day to, I don't know what the days are. I think it was around 10, 15, 20 days. It's expanded. Now, Texas, different kind of markets. Still see a lot of movement in Texas. See a lot of movement in Jersey. Still see a lot of movement of the Northeast though down into the Carolinas. The Carolinas and Florida have had a huge surge. So do prices go down? Again, I think it's market dependent. I also think that it's the motivation of the buyer and the seller. So sellers are still a little bit in this illusion that they still can get the comps and the prices that they could get when the big movement happened at the end of 2020 and 2021. That's going to fade out and it's fading faster than you think. The other thing that's going to be happening where I'm going to get into like where investing opportunities are, is just do the math and look at the trends. There are so many people who did not go back and refi when the interest rates were at all time low in the pandemic first hit. And if you're in a variable mortgage, you're going to get killed because I mean, you've already probably got a variance of anywhere between five to 7% that you weren't used to spending every month in your mortgage payment. There's going to be an interesting foreclosure that happens in the people that can't hold on because of the recession, because of the inflation, and no one's paying attention to how much more spending you are doing with inflation the way that it is clicking along. You continue to support the big box stores. That's fascinating. They never had to close during the pandemic. Small and medium sized businesses got killed during the pandemic. And it's fascinating. Buyers and sellers of real estate still spend interesting and they're not taking to affect the additional cost that they've got to bring into their monthly household to actually keep their house alive. So there'll be an interesting foreclosure run that goes on. There's also an interesting foreclosure run that's going through RVs. A lot of people didn't finance them properly. I think they'll be turned back in. That'll be an interesting one. And mobile homes, mobile home trailers and parks. That's a fast, easy cashflow pickup. You can usually get those for anywhere between $5,000, $15,000, $20,000. Get usually $500 to $1,000 a month in cashflow. It's going to be an interesting turn of real estate. And I also think because of the recession, people are still a little bit frozen. We're still, I always say, we're at the heels of the pandemic and we are in the recession. So people are still transitioning. And because most people are financially illiterate and they don't even know who to talk to and how to talk to anybody, they go to this thing called the bathroom wall. It's called the internet. And they just look for all this smattering of information and you try to cobble together your own idea versus hire a mentor, hire a coach, get a plan and know how to navigate through this. It's not going to be difficult. It's just different. Should you buy a home right now or wait to the end of the recession? Again, it depends on your goals, depends on your plan. Do you even have a plan? If you don't have a plan, you got to get a coach, a mentor. You got to get a plan. So, you know, there's a lot of variables. If you have kids, which school, you know, they're going to go to, are you going to transfer them into another school district? Do you have the capital to do it? Although a lot of you, if you didn't cash out, you're not coming forward with as much cash as you could. Some of you, you've been playing an amazing tax game, which is that if you live in your house for two years, you can actually carry all the capital gains. So if you actually, you know, made 250, you could carry that all forward to another one. So if you're in one of those where you're two years cycling into a bigger and bigger home and a better home and making the cash in between, that's an interesting strategy. So should you buy one right now? I don't know. I would just say what I see is more people are renting. They're actually selling out if they can still get a good price. And then they're going into a rental situation instead of buying back in because some of the markets are still too high. Like where we are here in Northern Nevada, way too high to get back in right now. Though you got to wait till those prices come down. But again, that's up to you, up to what you want to do with it. I also know people who are buying as prices are coming down a little bit in some markets, they're buying bigger homes next to universities and now renting by the room. So they're buying like a four bedroom, renting out to four different students, as long as it's close to a college campus. So again, depending on the use of the real estate, it's up to you, up to your plan. I want you to subscribe to my channel, click the notification button, share this with a lot of folks, especially if you have a group of people who've been talking about, you've been talking, but not walking about real estate, like stop asking other people's opinion who have never done it. I have so many millionaires in real estate in this community. Lean in, come learn, and come engage with us. Ask a question, go to asklaurel.com, ask any question at any time. There's two ways to do it. One, you do it free. One, you pay $17 a month in my membership and ask a question. I give you a phone number, local 775 number. You can text me 24 seven, as well as come live twice a month. So I can see your beautiful face and we can have a conversation about money. Now, how do you make money in real estate during a recession? Well, there's all sorts of ways. When it's this volatile, you've got to really be in the right markets. So as most of my guru and expert friends would say, buy in your backyard, buy where you can manage, buy where you can handle it. Now that's easier said than done when you're looking at some of these markets, the buy point in is just so high. I personally love buying in the Midwest. That's where I started. I was in Oklahoma, was my millionaire state. I branched into Arkansas. I own some in Mississippi, Texas, Kansas. I'm hugely in Kansas, Missouri, and Ohio right now. I love those markets. Like I said, I took a run through Boise. We did get rid of all our houses, but now we're in just land and some RV parks and doing some final moves out of there. There's a lot of ways to make money in real estate. If you're a beginner, let's talk to you. What do you do if you're a beginner? I would say join a team. How did I become a millionaire in real estate so quickly? I joined a team of other successful people. And you say, well, what did you do? Well, I had a big database because remember I was the master distributor of the cashflow game. So I had 15, almost 18,000 people that I could actually go back and introduce my real estate team to them. What did they want? What does cashflow reinforce? They wanted real estate. So not difficult to do OPM, other people's money, and hard money lending. It's everywhere right now. 401k money is everywhere right now, but you have to get a resume, meaning a portfolio. If you're just a beginner, what I tell all my beginners, a lot of beginning real estate is start small, do a quick fix and flip, whether that's mobile homes, whether that is fix and flip an RV park, a storage unit, just start small, start flipping. So you get your cash up and you get a little bit of a resume of successful projects. Then you can start getting into bigger stuff. So I know someone right now who went from a lot of single families, right? And single families, if all you have is one single family, and I know some gurus who teach this and I don't agree with it, because if you have a whole bunch of single family homes smattered throughout the country, that means you have one house, one property management company, one house, one property management company. I'd rather see you get four, five, six, and then you actually get farther in. I owned the property management companies when I went into a town because I bought more volume. So property management can either be the death of you or the life of you, depending on if you know how to manage them. And no one tells you enough about them. Other ways to get into real estate. I'm going to switch gears a little bit and I'm teaching a lot of our college and student and soon to be pro athletes this, is start small and do, whether it's handyman work, work on the maintenance crews, work for a local real estate agent, broker, be a bird dog. What that means is you're going to go out and find projects. If you can find projects before they're even in the MLS listing, you've got gold, you can actually do an arbitrage of that contract. There's a lot of ways to make money in real estate. What I would tell a lot of you is just don't make it on the buy. Own the construction company, the rehab company, the management company. There's so much cashflow around real estate and most of you can't be bothered. So you skip over the real estate and you just hire everybody else to do it. Why don't you own the companies that you hire and own it all? There's a way to do all of that. Love to help you learn that. Listen to me five days a week, Monday through Friday, we're out here with a 10 to 12 minute lesson on money on business and helping you become a millionaire. So again, go to askloreal.com and join our membership. Ask me any question anytime. If you can't ask a question, how do we begin a conversation? Let's talk tomorrow.