SVB’s (Silicon Valley Bank) collapse has more to do with the housing market than you think. With bank runs becoming contagious, Americans in fear of economic turmoil, and a recession now closer on the horizon, assets like real estate could be affected in ways that most everyday Americans don’t realize. But, to understand what could happen to home prices and the US economy, we’ll need to explain the entire situation.
Back on as expert guests, J Scott, multi-decade investor, and Scott Trench, CEO of BiggerPockets, are here to share their takes on the SVB’s meltdown. More importantly, they explain the events leading up to this bank collapse, how the pandemic created fuel for this future fire, and whether SVB’s collapse could cause a chain reaction that leads to more bank failures, harder economic times, and, surprisingly, higher mortgage rates.
J and Scott debate whether or not more small banks are at risk, what could happen to HELOCs (home equity lines of credit), mortgages, and other financing options, and whether or not real estate will go down with the ship as our economic situation goes from bad to worse. And, if you’ve been saving up for your next investment property, stick around as J and Scott walk through how real estate investors should be using their money in troubling times like today.
In This Episode We Cover:
SVB’s collapse explained and how it could drag us into a deeper recession
The effects on real estate and whether or not prices will drop as a result
Mortgage rate predictions and the Fed’s shaky decision to raise or halt rates
HELOCs (home equity lines of credit), mortgages, and other property financing options that could be in danger
Whether or not we’re in a recession, and if we aren’t, when the recession could hit
Investing in real estate in 2023 and the moves you MUST make to protect your investment
And So Much More!
Links from the Show
Find an Investor-Friendly Real Estate Agent
BiggerPockets Youtube Channel
BiggerPockets Forums
BiggerPockets Pro Membership
BiggerPockets Bookstore
BiggerPockets Bootcamps
BiggerPockets Podcast
BiggerPockets Merch
BPCON2023
Listen to All Your Favorite BiggerPockets Podcasts in One Place
Learn About Real Estate, The Housing Market, and Money Management with The BiggerPockets Podcasts
Get More Deals Done with The BiggerPockets Investing Tools
Find a BiggerPockets Real Estate Meetup in Your Area
David's BiggerPockets Profile
David's Instagram
David’s YouTube Channel
Work with David
Watch J’s First Interview with BiggerPockets
How Did A $200B+ Bank Collapse In 48 Hours? Is Real Estate Going To Be Impacted?
Books Mentioned in the Show:
Recession-Proof Real Estate Investing, Flipping, and More by J Scott
Connect with Scott & J:
J's BiggerPockets Profile
J's Website
Scott's BiggerPockets Profile
Scott's Instagram
Hear Scott on the BiggerPockets Money Podcast
Click here to listen to the full episode: https://www.biggerpockets.com/blog/real-estate-bonus-svb
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