Just listened to BP show #311 with guest J Scott (I know I'm late to the party). If you haven't had a chance to listen to it yet, you should. J talks about his 6 tips for REI in the current market. As someone who constantly goes back and forth on whether to wait for the next market downturn or just start now and worry about the downturn when it comes, these tips helped me a ton. To be clear, these are not my tips. All credit goes to J Scott. Hopefully this helps you!

1. Be certain of your numbers - make sure all your numbers are as accurate as possible. Verify your numbers as much as you can.

2. Stay away from long rehabs - quick rehabs are a safer in this market. Holding costs can quickly pile up if your property is being rehabbed for months and months, and a downturn could turn your "quick flip" into a lengthy buy and hold.

3. Have a backup strategy - nobody buying your flip? Try the BRRRR strategy. Or Air BnB. Or student rentals. Don't get caught in an all-or-nothing strategy. Be able to adapt.

4. Avoid thin deals - thin profit margins are risky. Assume the biggest drop you could see the market taking, and make sure that's your minimum profit target.

5. Keep clear of leverage at all costs - if the market drops farther than the equity you have in a property, you start losing your lender's money. Also, the more you borrow, the more expensive your holding costs will be. Don't borrow more than you absolutely need to.

6. Stay away from high-end properties - when the market begins to slow down, the first properties that lose value are high-end properties.

I added the link to the show. You should absolutely give it a listen, as J goes into all of these points in depth and really makes it easier to understand. Again, ALL CREDIT FOR THESE TIPS GOES TO J SCOTT.

https://www.biggerpockets.com/blog/biggerpockets-podcast-311-rules-investing-real-estate-coming-economic-shift-jscott/

Along with J, do you have any tips for RE investors in the current market? Let me know below! Best of luck!!

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