We know that there will be a real estate investing correction or a crash soon. We should be ready as investors or as somebody who wants to take advantage of this crash.
I started investing back in 2006, which was before the crash. Remember, 2008 and 2009 was a crash where everything just got terrible for real estate. People couldn’t give away the houses. I started investing even three years before that.
All through my investing, I made money. I made money in an up-down or sideways market and capitalized on this correction.
I want to show you how to become ready for this future. Let’s look at how you can get through this and still invest in an up, down or sideways market.
I want to prepare you so you are ready for this crash, this great investment opportunity. In 2009, I started buying more properties because people were just trying to give away properties.
By 2010, my portfolio was multiplying. Even the properties from 2006 continuously pay me with passive income.
Invest for Cash Flow
I have made money ever since I started investing in 2006. I still have the properties that I bought back then, and they’ve made me money every month. The reason why is because I bought them for cash flow.
I made sure these properties would make me money every single month. I did not invest in appreciation. Appreciation was not something that I was looking forward to because my homes’ values were at a certain level, but if I invested just for appreciation in the crash, it dropped in half.
But because I didn’t, I held on to the properties. Now they’re back above where they were when the crash was happening, and I still make passive income.
If you’re going to be investing, you need to be concerned about the types of homes you buy, the price points, and how much you could rent them.
You want to make sure that you’re making $250 a month in passive income from every property. I want to teach you how to do this. Check out my free course at masterpassiveincome.com/freecourse.
Throughout the course, you will learn how to invest your money wisely and correctly, find and fund properties, investing out of state, and how to have an automatic business.
Now what we’re looking at is the difference between different types of homes. Many people buy rental properties, but there are only a few ways to do it.
Types of Properties
Look at the types of properties that you’re going to be buying. We’re looking at cash flow, not at appreciation. We’re not going to be buying $300,000 to $400,000 houses, hoping that we will be making money.
We want to find properties that are selling for $50,000-$60,000 and yes, some houses sell for $50,000 and $60,000. If you live on the coast, you wouldn’t understand that the Midwest and the South East, down in the Carolinas and Florida, are excellent properties for you to start investing in. Look for homes that are good inventory.
Build Your Business First
Remember that what we do as investors is we build the business first and make sure that we know the property will make us money. Next thing, make sure you have someone manage the property and get good tenants to ensure that we will get cash flow every month; even if the market drops in half, we will still be making money.
Earlier this year, a realtor said to me that she wouldn’t have believed him months before that this was coming and that sales would be happening this much, just like 2006. It was so much like 2006-2008, where there was a run-up and a considerable correction.
What you don’t want to do is buy a $300,000 house because all those houses would be cut in half in value if there is a crash or correction, and you’ll lose $150,000. A $300,000 house is now $150,000.
Compare that to a $60,000 house that rents out, makes you $250 a month in passive income, and it has good tenants there. If you were to buy it for $60,000 and a crash happens, half of it gets eaten away.
That’s only a $30,000 loss as opposed to a $150,000 loss. Additionally, you’re still making passive income. When the market does come back, you’ll get all your money back.
How to Prepare for this Crash and Then Capitalize On It
I want to give you some more insights into preparing for this crash and then capitalizing on this crash.
1. Prepare For This Potential Crash/Correction With Cash
Have as much cash on hand as possible. I know it’s hard to hear that and think I can do it, but you need to figure it out. Either by getting another job, or cutting expenses, whatever it might be, ensure sufficient cash in hand. Save money to be able to buy loads and loads of property when a crash happens.
2. Do Not Get Into Any Liabilities
Make sure you do not get into any liabilities right now. You’re an investor, so you must be aware of what a liability is.
A liability is something that takes money out of your pocket, and investment or an asset is something that puts money into your pocket. So do not get into significant liabilities, like buying a new car or buying a house or whatever it might be.
I was even looking into getting a new phone, but the one I looked at was $1,400. Instead, save as much as you can and buy another property.
3. Get Out Of Any Existing Liabilities
If you have a $30,000 car with a $28,000-$35,000 loan against it, and that is more than the car’s value, I want you to consider selling that car strongly. Think about taking that loss now rather than later.
The reason is that if you remember the cash for clunkers thing that Obama did way back in 2010, it was so bad. Nobody could sell cars because nobody was buying them. Right now, the prices are still high for cars.
As opposed to now, selling in the future, you wouldn’t be able to sell it for what you can get for it now.
Get out of it now and get out of that liability so you can save money. Go out and buy a $3,000 car instead. I drove my 2007 Honda Odyssey for ten years. I had plenty of money to buy a car, but I had no use for a new car. I wanted to keep driving the Honda because I saved money to buy a new property.
4. Learn How to Invest
You need to be learning how to invest now, not when there is a crash, and the prices are half-off. That’s the wrong time to learn! Right now is the best time because you’re going to have everything in your brain, and you may even know which area you are going to invest in.
You may be watching and notice prices come down, and you will be ready to jump in. My students who invest nationwide are buying great properties and are prepared for when there will be a crash or a correction.
5. Start Building Your Business Now
In addition to learning how to invest in real estate right now is to start building your business. Now is the best time to do it. Figure out everything from getting your business information, your business accounts, your LLCs to even finding the area that country you’re going to be investing in.
At this time, also get your property managers, contractors, realtors, wholesalers, inspectors, roofers, and plumbers on board.
If you do all five of these things, you’ll be ready for when there is a correction. And if you implement these into your business and life right now, you will be prepared to capitalize, to make money on this big crash or correction that will happen.
All of these opportunities are going to be ready and waiting for you. Make sure you watch my next video to learn how to invest and make loads of money in real estate. If we’re ready right now, we will be able to make so much money in an up, down, or sideways market.
- Get a down payment faster with greater returns on your money with Ticker: HOM
- Deal Check Review Get 20% OFF Promo Code with Walkthrough
- How to Be A House Flipper | Finding, Fixing, and Making Money
- How to Get Portfolio Loans for Investing in Real Estate
- The Secret to Investing in Real Estate
Premium online courses for any level of investor: beginner-advanced. Completely go at your own pace and can be taken through "Self-Study" or through "Membership".
Inside the membership, attend live 90-minute Group Coaching sessions with Coach Dustin Heiner as he and the MPI Coaches teach you how to build a successful real estate investing business.
Connect with the MPI Coaches and the other like-minded investors inside the MPI Mastermind Community. Ask questions about investing and get feedback how to be successful in your business.