On The Market

168: How to Prepare for a Recession in 2024

Dec 14, 2023

Learn how to prepare for a recession in 2024 and profit from it. The podcast provides four suggestions for investors to navigate the bad times and thrive in the good. Topics include emergency reserves, cutting costs, accessing backup debt, and diversifying outside of real estate. The importance of cash reserves, managing software subscriptions, and expenses, as well as reallocating capital and diversification for real estate investors, are also discussed.

41:33

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Quick takeaways

Building a cash reserve is a key strategy to recession-proof your business and navigate any economic downturn.

Reducing and evaluating operating costs can help maintain financial stability and adjust spending to match market conditions in preparation for a recession.

Deep dives

Building a Cash Reserve for Recession-Proofing

One key strategy to recession-proof your business is by building a cash reserve. By ensuring you have plenty of cash reserves in place, you can be prepared for a recession or any unexpected financial challenges. Having six months of overhead expenses in a separate bank account provides a cushion to cover costs if your tenant loses their job or if there are unexpected repairs. It's important to allocate a set amount per number of properties to ensure you have enough reserves for each unit and property maintenance needs. By having a cash reserve, you can feel confident in navigating any economic downturn.

Introduction

3min

Analyzing the Likelihood of a Recession in 2024 and Preparing for Potential Economic Downturn

2min

How to recession-proof your business

4min

Preparing for a Recession: Importance of Cash Reserves

13min

Managing Software Subscriptions and Expenses for Cost Savings

2min

Managing Expenses and Access to Capital

17min

Reallocation of Capital and Diversification for Real Estate Investors

3min

A recession isn’t off the table for 2024, so you’ll need to know how to prepare for a recession and profit if the economy starts to slide. If your real estate values fall, your tenants stop paying rent, or you lose your job, how will you ensure you keep your properties? Those who can survive the bad times often thrive in the good—so what should you do to prepare?

Today, our expert panel gives four suggestions ANY investor can take to make it through a recession unscathed. All of these suggestions are being put into practice NOW by our panel of experts. They’re not complicated, and acting on even a few of them could save you tens of thousands (or an entire property) if and when a recession finally does hit.

From cutting costs to keeping cash on hand, investing differently, and building a "backup" for buying properties, these tactics will enable you to scoop up the deals that inexperienced investors couldn’t hold onto!

In This Episode We Cover:

How to prepare for a recession (and profit!) in 2024

Emergency reserves and how much you should have in the bank NOW

Quick ways to cut costs so your business can easily survive downturns

Accessing “backup” debt that’ll help you close on deals as banks tighten up credit

Looking outside of real estate for returns and how the experts are diversifying

Why you MUST keep some “liquid” assets on you during a recession

And So Much More!

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