• The Entrepreneur Forum | Startups | Entrepreneurship | Starting a Business | Motivation | Success
  1. Join 40,000+ entrepreneurs
    who are kicking butt and
    winning their dream life.

    Unscripted™ Entrepreneurship:
    A Business That Pays More Than Money, It Pays Time.

    "Fastlane" is an entrepreneur discussion forum based on The Unscripted Entrepreneurial Framework (TUNEF) outlined in the two best-selling books by MJ DeMarco (The Millionaire Fastlane and UNSCRIPTED™). From multimillionaires to digital nomads, the forum features real entrepreneurs creating real businesses.

    Download (Unscripted) Download (Millionaire Fastlane)  Register
    Registering for the forum removes this block!

  2. Forum *Official* Book Discussion
    Atomic Habits by James Clear

    The forum has voted to discuss this book. Grab it, discussion begins soon!
    Buy: Buy | Discuss: Atomic Habits, by James Clear (Review | Discuss)

How To Profit From The Coming Recession?

Discussion in 'Investing/Trading/Cryptocurrency/Altcoins' started by GetShitDone, Jan 7, 2019.

  1. GetShitDone
    Offline

    GetShitDone Bronze Contributor

    Messages:
    263
    Likes Received:
    214
    Joined:
    Dec 20, 2012
    Location:
    Vancouver, Sydney, London
    Rep Bank:
    $1,076
    Everyone is talking about the coming recession as we've been in a bull market for 9 years now.

    What are the best ways to short or profit from the recession?
     
    Xeon likes this.
  2. Vaughn
    Offline

    Vaughn New Contributor Read Millionaire Fastlane

    Messages:
    12
    Likes Received:
    9
    Joined:
    Apr 20, 2017
    Gender:
    Male
    Location:
    Hamburg/Germany
    Rep Bank:
    $66
    According to Buffett, you must be gready when everyone else is fearful. That would mean go into cash and wait for the crash. Then start buying what others need to sell.

    In practice that's of course a little more complicated, because you never now where the bottom is. However, I will try this approach, for stocks and also for real estate. I hope for some good foreclosure sales in my hometown.


    Gesendet von meinem Moto G (4) mit Tapatalk
     
    LuckyPup likes this.
  3. Scott Steffek
    Offline

    Scott Steffek New Contributor

    Messages:
    3
    Likes Received:
    6
    Joined:
    Jan 7, 2019
    Gender:
    Male
    Rep Bank:
    $31
    I sell investors single family homes and small mutli units. Just as a word of warning, the market is very tight right now. Finding a foreclosure at a good price is very difficult right now. Almost any "listed" home for sale, is gobbled up very quickly..... IF it's a good deal. There is a lot of work that needs to go into buying a foreclosure or any real estate that you want to buy as an investment. For example: Do you know how to calculate ROI% (return on investment)? How much are the same type of homes selling for in the area? How much work does the house need? Who is going to do the work for you? Where will the money come from, to rehab it? Do you have enough cash to pay the holding costs, until the house is sold or rented? Do you have a competent property management company to find a good tenant? I could go on and on. There is a great deal of work that goes along with investing in real estate. I strongly suggest you research the business thoroughly before you even think about buying something. I see or hear of people almost every day, that got burnt buying real estate. It's a serious business and NOT for the novice. Best of luck to you.
     
    Xeon, Vaughn, AArora and 1 other person like this.
  4. Vaughn
    Offline

    Vaughn New Contributor Read Millionaire Fastlane

    Messages:
    12
    Likes Received:
    9
    Joined:
    Apr 20, 2017
    Gender:
    Male
    Location:
    Hamburg/Germany
    Rep Bank:
    $66
    Thanks for your words.
    Just to avoid misunderstandings: I don't plan to buy and resell, but to buy and rent out. And I won't do it in the current market, cause you're absolutely right about the difficult market. However, my home town is a great place to buy especially small apartments, cause it has a university and a ratio of 1 student on 6 inhabitants.
    I did and still do a lot of research on the topic (and it's truly a business with a lot of pitfalls). But I'm confident and waiting for my chance.
     
  5. NuclearPuma
    Offline

    NuclearPuma Bronze Contributor FASTLANE INSIDER Speedway Pass

    Messages:
    192
    Likes Received:
    373
    Joined:
    May 3, 2015
    Gender:
    Male
    Rep Bank:
    $2,993
    Write a self help book titled "How to Profit From the Coming Recession"
     
    Last edited: Jan 7, 2019
  6. Scott Steffek
    Offline

    Scott Steffek New Contributor

    Messages:
    3
    Likes Received:
    6
    Joined:
    Jan 7, 2019
    Gender:
    Male
    Rep Bank:
    $31
    Rentals can be excellent money makers. Try to find what's called "pocket listings". These are properties or apartments that are NOT listed on what's called the MLS (multiple listing service). Word of mouth about a "tired" landlord works or we buy houses signs work too. There's many different ways to find off market properties. I noticed you mentioned college students. That can be an excellent market or you can lose your.... you know what. I always tell my investors that you can buy the best deal on the face of the Earth. But if you have lousy property management, you have nothing. If you have to evict a tenant or they tear your house up or if they don't pay, it can be devastating to your bank account. Remember too, that you might have to deal with an apartment being vacant for the summer months, because they're college kids. So it's possible you might not have any income every summer. That definitely hurts the bank account. Try to find kids that will rent all year. That shouldn't be that difficult. Again, best of luck.
     
    Vaughn and JAJT like this.
  7. minivanman
    Offline

    minivanman Gold Contributor Speedway Pass

    Messages:
    873
    Likes Received:
    2,035
    Joined:
    Mar 16, 2017
    Gender:
    Male
    Location:
    DFW
    Rep Bank:
    $11,035
    And don't forget about a self help book for the other side. What to do when you or your spouse loses a job in a recession. With an upgrade of, how to raise my kids in a recession and how to care for my dog during a recession.

    I'm not joking, I bet you will make money.
     
    Kruiser, TheCj, Get Right and 2 others like this.
  8. D_Benga
    Offline

    D_Benga New Contributor

    Messages:
    13
    Likes Received:
    3
    Joined:
    Jan 7, 2019
    Location:
    East Coast
    Rep Bank:
    $18
    Try to have as much cash as possible on hand. If/once the recession hits, I would try and buy up low priced properties (with minor fixes needed) and hold on and resell once the market is back up. It would be best if you could avoid loans as that would cause you to have monthly payments. Making payments would be hard as you never know how long the market will be down. Paying cash for properties would be ideal.
     
  9. GetShitDone
    Offline

    GetShitDone Bronze Contributor

    Messages:
    263
    Likes Received:
    214
    Joined:
    Dec 20, 2012
    Location:
    Vancouver, Sydney, London
    Rep Bank:
    $1,076
    Any reason why you would only buy properties with cash? What about other assets like stocks, crypto, bonds, etc?

    I imagine your purchasing power would be very big too during a recession with lots of cash.

    Agreed that having as much cash as possible is best. Cash is king in this scenario it seems.

    I own farm land which seems to do positively during a recession, so I won't sell it right now.

    Only other place I can find cash is selling my Crypto (which is expected to be a bull market in 2020 coincidentally during the recession).

    Seems selling products that focus on a recession is smart as mentioned above too..
     
  10. LuckyPup
    Offline

    LuckyPup Done Dicking Around Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass

    Messages:
    309
    Likes Received:
    391
    Joined:
    Aug 2, 2012
    Gender:
    Male
    Location:
    Midwest USA
    Rep Bank:
    $2,006
    I dunno, but if it's as bad as many fear lotsa folks will be underwater with loans, credit, mortgages, etc. Start a debt restructuring or loan consolidation service. Maybe a tax reduction service. Just spitballin'.
     
  11. D_Benga
    Offline

    D_Benga New Contributor

    Messages:
    13
    Likes Received:
    3
    Joined:
    Jan 7, 2019
    Location:
    East Coast
    Rep Bank:
    $18
    The reason I recommend paying cash is so you can avoid being stuck making payments(interest) in case the market is down longer than expected. Might be good to sell Crypto during the recession as one would expect it to increase in value during the recession.
     
  12. Amro
    Online

    Amro Contributor Read Millionaire Fastlane

    Messages:
    83
    Likes Received:
    72
    Joined:
    Oct 5, 2018
    Gender:
    Male
    Location:
    Schoorl
    Rep Bank:
    $430
    Hi,

    Write an ebook about How to survive and thrive through the recession crash of 2020 or 2021. You can always alter the year. :)

    All the best,
    Amro
     
  13. LuckyPup
    Offline

    LuckyPup Done Dicking Around Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass

    Messages:
    309
    Likes Received:
    391
    Joined:
    Aug 2, 2012
    Gender:
    Male
    Location:
    Midwest USA
    Rep Bank:
    $2,006
    Another common book tactic is to write the exact opposite of what a the prevailing wisdom espouses. In this example, "Why 2020 Will Be the Biggest Boom in History (and How YOU Can Profit From It)"
     
    Amro likes this.
  14. harry wilson
    Offline

    harry wilson Contributor

    Messages:
    9
    Likes Received:
    34
    Joined:
    Jun 2, 2016
    Gender:
    Male
    Location:
    10001
    Rep Bank:
    $171
    Tech is always first to go

    People are more likely and confident enough to invest in riskier places when confidence is high IE, crypto currency and divert to safer places in a downturn

    And when the market drops its the first to go

    I have a theory that the following can be a good guide in order of what drops first in a downturn and what rises the most in an upturn

    Risky assets ie crypto
    Then tech
    Then general stock market
    Then real estate

    So a theory I have, is once real estate drops and levels, thats a strong indicator that only better things are to come.

    Another place I used this was recently we had people investing in crypto and tech was rocketing, as soon as Apple passed 1T marketcap that was enough for me to realize ok this definitely could be a big opportunity for downward plays and anything higher is just unreasonable as Apple products have been falling in popularity also with their lstest releases IMO.
     
    D_Benga likes this.
  15. LuckyPup
    Offline

    LuckyPup Done Dicking Around Read Millionaire Fastlane I've Read UNSCRIPTED FASTLANE INSIDER Speedway Pass

    Messages:
    309
    Likes Received:
    391
    Joined:
    Aug 2, 2012
    Gender:
    Male
    Location:
    Midwest USA
    Rep Bank:
    $2,006
    Interesting, but anecdotal. Do the historical data support your theory?
     

Join 1000s of entrepreneurs who are rewriting life's script and winning financial freedom.

---- ----

You must be a member to join the conversation.

Create Account

Join the community fast and easy!

REGISTER

Log In

Already have an account? Login here.

LOG IN

Share This Page