BiggerPockets Real Estate Podcast
How to Invest in Real Estate During a Recession (2025 Update) w/J Scott
May 9, 2025
J Scott, author of Recession-Proof Real Estate Investing, shares insights on thriving during economic downturns. He emphasizes that a recession is a chance to build wealth, urging investors to prepare strategically. J discusses three essential steps to ready oneself for opportunities while others hesitate. He also highlights which real estate deals are most lucrative during tough times and gives advice on managing properties effectively. Key strategies include focusing on cash flow and understanding market dynamics for informed decision-making.
41:24
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Quick takeaways
- Accumulating cash and building lines of credit before a recession allows investors to seize discounted deals during distressed markets when opportunities arise.
- Prioritizing properties in areas with strong population and employment growth helps mitigate risks and maintain real estate demand during economic downturns.
Deep dives
Understanding the Business Cycle
The economy experiences cycles of expansion and recession, with historical data showing that recessions occur approximately every four to five years. Unlike the significant downturn in 2008, most past recessions have only caused minimal declines in real estate values, often less than 2%. Even during tough economic times, investing in real estate can still be a wise choice if approached strategically. Awareness of where the economy stands in this cycle is crucial, as it informs investors on potential shifts they can make to safeguard their investments.
