How to Make Money Investing During a Recession
I’m Ted Thomas, and I have been involved with real estate for more than 30 years. Today, I’m answering your question about how to make money investing during a recession.
Small fortunes are made by average people dealing with real estate in both the traditional and non-traditional markets. Timing and cash reserves is everything.
Want to learn how to make money investing during a recession? Would you like to buy mortgage-free homes for pennies on the dollar? Or earn double-digit interest rates secured by real estate? Then you don’t want to miss this FREE Mini Course.
Over the last 25 years, I’ve specialized in a subset of the traditional real estate business, tax liens and tax defaulted property which is a small, very narrow niche of the traditional real estate market.
This market is the result of property owners defaulting on property taxes, and local county and state governments will not put up with defaulted taxes. The property owners face consequences.
As you’ll soon see, tax liens and tax defaulted property are recession-proof investments, among the best investments during financial crisis. It’s how to invest before a recession and how to make money investing during a recession.
It’s Important to Prepare for Recession
When the market is soaring, it is easy to forget that what goes up can also come down. Stock market investors understand that investing requires flexibility daily because the markets change so quickly.
When interest rates are rising that usually means another real estate recession on the horizon.
Real estate traditionally isn’t as active as an up and down business days, but over a certain period of time, it certainly goes up and down. If the economy slows down or government actions cause the economy to slow down, the cyclic trend creates big problems for real estate investors.
Recessions are a reality of investing in real estate, and having awareness goes a long way if you want to know how to make money investing during a recession.
Recessions Typically Hurt
Recessions happen. If you have no idea, no plan and don’t understand the economy, you could easily become overextended financially. Then when the market slows down and ultimately crashes, you will have too many bills to pay and no income.
Traditional real estate investors like to buy, especially if it is another house they can rent. Someone has told them to let someone else pay for your property, so they rent the property in the hopes that someone will make the payments, take care of the maintenance, and pay the taxes.
Most newcomers who don’t know how to make money investing during a recession, rarely take into account what happens if there is a recession. Those nice tenants suddenly lose their jobs, and now you have two house payments and two tax payments, and what if you lose your job?
I have a free gift for you, a special Master Class that will teach you how to make money investing during a recession earning huge profits with tax lien certificates and tax deed investing. Get your FREE gift today.
Cash Is King in a Recession
Recessions are serious however for the real estate business they are devastating. When real estate goes down it continues down for sometimes a long period of time, 5 years to 10 years.
It is not a joke when people say buy when there’s blood in the streets. That blood is the bleeding of real estate investors who had no reserve and used bank leverage or family money.
Cash reserves aren’t just a word that stands out in conversation or in a business plan. It’s a way of life, and most entrepreneurs don’t understand that no reserve could mean no business in weeks.
Real estate investors come and go based on market knowledge, cash reserves, and planning, and real estate recessions create huge opportunities for those who know how to make money investing during a recession.
Real Estate Investing During Recession
30 years ago, I began investing in tax-defaulted property. Buyers at tax-defaulted auctions purchase directly from the county government.
Over 3,000 county governments across the United States will each conduct one or more tax-defaulted auctions each year.
When property owners fail to pay property taxes, the county treasurer will seize the property and resell it at a public auction to the highest bidder in order to collect the past due taxes.
The county treasurer will start the bidding at the back taxes or slightly above, which will discount selling prices by 60%, 70%, or 80% or more.
How to Make Money in Real Estate During a Recession
Savvy auction buyers can purchase real estate for as low as 10 cents, 20 cents, and 30 cents on the dollar, and the difference between the auction price and sales price is the profit for the new auction buyer.
For example, a $100,000 property may have a starting bid of only 10 cents on the dollar – that’s $10,000. With competitive bedding, let’s assume a buyer pays $30,000.
When the county transfers the property, they will delete the mortgage or deed of trust loan.
The new purchaser has paid $30,000 for a property with an assessed value of $100,000 and received the property mortgage-free.
Let’s assume the buyer sells at a discount for $65,000. That’s a $35,000 profit.
Recessions happen regularly, and most recessions will cause the default process to accelerate. So if anything, there will be more defaults.
When the markets fail savvy investors who have patience, understand the economy and know how to make money investing during a recession will take advantage of the failure while the unprepared pay a huge price for ignorance.
We hope you enjoyed Ted’s lesson, “How to Make Money Investing During a Recession”
Regardless of the economic climate, you can earn lucrative profits from tax delinquent property investing.
Tax defaulted real estate will always be available, and you can purchase it mortgage-free for pennies on the dollar. The huge profit margin mitigates risk and also makes a quick resale possible.
If you’d like to know more about how to make money investing during a recession with tax defaulted property investing, Ted Thomas provides full support and complete training with home study courses, Q&A webinars, live tutorials, workshops, web classes, and personal coaching.
You can learn how to reap the huge rewards from tax lien and tax defaulted property investing! Get started today by taking advantage of Ted’s Free Master Class! Act now, it costs you nothing and will give you a big head start!