How to Invest in Real Estate During a Recession (2025 Update) w/J Scott

18 snips

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.

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INSIGHT

Understanding Business Cycles

The economy operates in cycles with expansions, peaks, recessions, and recovery phases.
Real estate rarely sees major declines except in exceptional downturns like 2008.

ADVICE

Cash Is King

Prioritize saving cash and increasing liquidity before a recession to buffer against economic hardship.
Cash enables investors to capitalize on discounted real estate opportunities during downturns.

ADVICE

Build Credit Lines Early

Obtain lines of credit now while credit availability is relatively easy.
Access to credit is as valuable as cash during a recession due to tightening lending conditions.

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A recession isn’t a time to panic—it’s a time to build wealth. If you’re listening to this podcast, you’re already multiple steps ahead of the masses that shift their mindset with every news story shouting from the rooftops that a crash, correction, or recession is coming. Savvy investors are sitting, waiting, knowing that if a recession does come, deals usually do, too. Want to build wealth during a recession instead of losing your head? J Scott, author of Recession-Proof Real Estate Investing, is here to show you how.

J says there are three things every investor should be doing before a recession to be in the best position possible. If you follow these three, relatively simple, steps, you’ll be ready to buy deals at a steep discount while average Americans miss out on yet another opportunity to invest. This happened in 2008, and many modern investors regret not having the means to buy back then.

Plus, J outlines the real estate deals that work best in a recession, whether you’re a buy-and-hold landlord or a flipper/renovator. Some homes have serious risks attached to them during downturns, while others offer wealth-preserving (and building) opportunities. Here’s how to invest in real estate if a 2025 recession hits.

In This Episode We Cover

The three things every investor must do to prepare for a recession

Time to sell? Why offloading a poorly performing rental now could be a smart move

What to do right now if you have rental properties (and want to keep your cash flow going!)

The business “cycle” and why we may be at the “peak” before the fall

Building your recession-proof strategy so you DON’T deviate from it when times get tough

And So Much More!

Check out more resources from this show on ⁠⁠⁠⁠⁠⁠BiggerPockets.com⁠⁠⁠⁠⁠⁠ and ⁠⁠⁠⁠⁠⁠https://www.biggerpockets.com/blog/real-estate-1119

Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email ⁠⁠⁠⁠⁠⁠advertise@biggerpockets.com⁠⁠⁠⁠⁠⁠.

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