How were you staying busy in the 2008 recession ?

Gilbert, AZ · Member since 2020 · 94 posts · 26 votes

Hello Everyone,

Wanted to ask the professionals of this forum who have been around for a few crashes, how were you staying busy in the 09 recession ? What did you focus on to serve your clients and get closings ? What skills did you have to learn ? Did you target any specific buyers or sellers ? If yes what was the criteria ?

Your response will be highly highly appreciate

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Dan NelsonBusiness Member

Real Estate Broker · Chicago and Kansas City · Member since 2016 · 77 posts · 61 votes

Recessions are not bad for buyers - only sellers. The challenge for buyers is trying to decide which property to get. They can get overwhelmed thinking the market is going to get worse or they are overpaying. The best thing you can do is pay attention to the market and know if it is going up or down. If it is going down, you can get more aggressive on the asking price. They want to see you bring knowledge, share it with them, and lead confidently. If you do that, they will love you.

The real challenge is if you are selling during a recession. If the market really goes that way - and I am not certain it will because we still have a massive inventory problem, you just have to be realistic with sellers. During a downturn, the houses that are finished are going to sell first. Any unfinished house is going to look like a bargain to buyers and they should be prepared for that.

Basically, there is no reason to be worried. Pay attention to what's happening and know your market. You will always have success if you do that in any market.

[email protected]773-295-1751 Podcast Guest on Show 2 “Slam Dunk” Small Multifamily Deals in 2023 (and Where to Find Them)

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Dan NelsonBusiness Member
Real Estate Broker · Chicago and Kansas City · Member since 2016 · 77 posts · 61 votes
4y
Recessions are not bad for buyers - only sellers. The challenge for buyers is trying to decide which property to get. They can get overwhelmed thinking the market is going to get worse or they are overpaying. The best thing you can do is pay attention to the market and know if it is going up or down. If it is going down, you can get more aggressive on the asking price. They want to see you bring knowledge, share it with them, and lead confidently. If you do that, they will love you.
The real challenge is if you are selling during a recession. If the market really goes that way - and I am not certain it will because we still have a massive inventory problem, you just have to be realistic with sellers. During a downturn, the houses that are finished are going to sell first. Any unfinished house is going to look like a bargain to buyers and they should be prepared for that.
Basically, there is no reason to be worried. Pay attention to what's happening and know your market. You will always have success if you do that in any market.
[email protected]773-295-1751 Podcast Guest on Show 2 “Slam Dunk” Small Multifamily Deals in 2023 (and Where to Find Them)
Dan Loves Houses4.971 Reviews
Website View Page
5 Reply
Jim K.
Handyman · Pittsburgh, PA · Member since 2018 · 5k+ posts · 13k+ votes
4y
LOL. I was working on my handyman skills, not realizing how useful they would be as soon as the market turned.
1 Reply
Jeremy Horton
Rental Property Investor · Somewhere over the Rainbow · Member since 2021 · 1k+ posts · 1k+ votes
4y
I was in highschool studying to make good grades and learning how to drive
3 Reply
Bill B.
Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes
4y
Luckily i was in Vegas. So I was buying everything I could get my hands on. It was a great time for real estate investors and especially landlords. Sooo much easier than the last few years.
4 Reply
Carlos Ptriawan
Member since 2019 · 7k+ posts · 4k+ votes
4y
Quote from @Francisco Milan:

Hello Everyone,

Wanted to ask the professionals of this forum who have been around for a few crashes, how were you staying busy in the 09 recession ? What did you focus on to serve your clients and get closings ? What skills did you have to learn ? Did you target any specific buyers or sellers ? If yes what was the criteria ?

Your response will be highly highly appreciate

In 2007,2008 I'm avid reader of zerohedge, so their analysis is pretty much correct that one of the big bank will collapse (2008 Lehman) and exactly at that price, we started buying homes.

2009 is very busy because there're multiple bids everywhere, like 20 30 bids in the bay area. very busy 2009.
2 Reply
Lexey Vezzoso
Real Estate Agent · Boise, ID · Member since 2019 · 192 posts · 184 votes
4y
This is a great question Francisco!
I was not in real estate during 08 but it's great to learn from people who experienced it and hear what worked best for them.
3 Reply
Francisco Milan
OP
Gilbert, AZ · Member since 2020 · 94 posts · 26 votes
4y
Quote from @Bill B.:

Luckily i was in Vegas. So I was buying everything I could get my hands on. It was a great time for real estate investors and especially landlords. Sooo much easier than the last few years.

Of for sure man when I got into real estate back in 2014 I was picking up properties for very very low specially of market homes. Top 2 deals I bought was a triplex for $25k brining me $1,800 a month minus hard money loan which was only $350 and utilities. Second was 8 units for just $90k only 2 needed work
0 Reply
Francisco Milan
OP
Gilbert, AZ · Member since 2020 · 94 posts · 26 votes
4y
Quote from @Carlos Ptriawan:

Quote from @Francisco Milan:

Hello Everyone,

Wanted to ask the professionals of this forum who have been around for a few crashes, how were you staying busy in the 09 recession ? What did you focus on to serve your clients and get closings ? What skills did you have to learn ? Did you target any specific buyers or sellers ? If yes what was the criteria ?

Your response will be highly highly appreciate

In 2007,2008 I'm avid reader of zerohedge, so their analysis is pretty much correct that one of the big bank will collapse (2008 Lehman) and exactly at that price, we started buying homes.

2009 is very busy because there're multiple bids everywhere, like 20 30 bids in the bay area. very busy 2009.

Is zerohedge still around ?
0 Reply
Francisco Milan
OP
Gilbert, AZ · Member since 2020 · 94 posts · 26 votes
4y
Quote from @Lexey Vezzoso:

This is a great question Francisco!
I was not in real estate during 08 but it's great to learn from people who experienced it and hear what worked best for them.

Same and yes very important as things are changing.
0 Reply
Alex Talcott
Attorney · Durham, NH · Member since 2019 · 292 posts · 126 votes
4y
Working for a financial services law firm as a first+second year attorney and not knowing any different. First-time through life! Battle-tested for the future.
0 Reply
Terrell Garren
Rental Property Investor · Concord, NC · Member since 2016 · 1k+ posts · 3k+ votes
4y
Bought my first rental house as a hobby project in '08. $68K purchase, $20K rehab. Rented to same lady for 14 years. I think I've been to the property maybe 10 times. Current comp is $263K. The good old days for investors.
3 Reply
David Hedges
Investor · Crown Point, IN · Member since 2014 · 177 posts · 84 votes
4y
I had been working on trying to do my first flip right around the crash. I quickly decided against flipping, and just held everything as long term rentals.
I had also been managing everything on my own at that point, and made a lot of mistakes in not getting people out when they clearly couldn't afford rent. Added to all this, I had just opened a cleaning business the year before, it was pretty tough.
we focused mainly on just getting better at the basics, screening, quickly removing bad tenants, and maintenance.
fortunately we hadn't been over leveraged at the time, and we made it through relatively unscathed, both with the rental properties and the cleaning business.
0 Reply
Kelly Asmus
Real Estate Broker · Portland, OR · Member since 2018 · 123 posts · 71 votes
4y
Keep your debt low, and if you can afford it - buy more rental properties. I was in real estate during 2008 and it was a great time to buy. Pick some properties up for yourself and if you are a broker - then help your clients find good ones.
As Warren Buffer says -“Risk comes from not knowing what you're doing.”

So educate yourself, market cycles change and in every market cycle there is opportunity. Find it, seek it out and make it work for you. I know I am actively looking for good deals for myself and clients. With rents going up and interest rates going up - long term rentals look like an excellent hedge against inflation. Rents aren't going down!
1 Reply
Drew SygitBusiness Member
Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
4y
Was looking for private lenders to fund purchases.
Wish I'd looked harder for more!
[email protected]248-209-6824
Logical Property Management4.9451 Reviews
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1 Reply
Carlos Ptriawan
Member since 2019 · 7k+ posts · 4k+ votes
4y
Quote from @Francisco Milan:

Quote from @Carlos Ptriawan:

Quote from @Francisco Milan:

Hello Everyone,

Wanted to ask the professionals of this forum who have been around for a few crashes, how were you staying busy in the 09 recession ? What did you focus on to serve your clients and get closings ? What skills did you have to learn ? Did you target any specific buyers or sellers ? If yes what was the criteria ?

Your response will be highly highly appreciate

In 2007,2008 I'm avid reader of zerohedge, so their analysis is pretty much correct that one of the big bank will collapse (2008 Lehman) and exactly at that price, we started buying homes.

2009 is very busy because there're multiple bids everywhere, like 20 30 bids in the bay area. very busy 2009.

Is zerohedge still around ?

Yes www.zerohedge.com

I am able to timing the market (2008, covid crash) due to zerohedge only. Most of the articles are very analytics and realistic although I can say it's very negative as well. It's very different than here (BP has a bias more into the seller side and not investor-friendly).
1 Reply
Tommy Parker
Property Manager · Charlotte, NC · Member since 2022 · 269 posts · 135 votes
4y
I wasn't in Real Estate in 08. In fact, I was in 8th grade. It's really cool to see everyone's response here about what they were doing.
1 Reply
Mose Gebremeskel
Investor · Member since 2022 · 234 posts · 144 votes
4y
14 years old in 08. Honestly cool to see the range of answers on this thread!
1 Reply
Sophie Sternbergh
Lender · Member since 2022 · 12 posts · 8 votes
4y
My family worked in the mortgage business and went bankrupt due to the market in 2008. I watched and learned and waited, and am now in the industry myself navigating the current events. Very interesting to have experienced the industry from several sides now.
1 Reply
Alex Cortes
Rental Property Investor · Miami, FL · Member since 2020 · 4 posts · 1 vote
4y
@Sophie Sternbergh do you think it’s still safe to buy real estate at the current market value or is it to risky ?
0 Reply
Francisco Milan
OP
Gilbert, AZ · Member since 2020 · 94 posts · 26 votes
4y
Quote from @Mose Gebremeskel:

14 years old in 08. Honestly cool to see the range of answers on this thread!

It really is, thats why I wanted to ask those who had been through the crash.
0 Reply
James Hamling
Real Estate Broker · Minneapolis, MN · Member since 2011 · 5k+ posts · 6k+ votes
4y
New home development stopped on a dime, which I was in, so i had to take a big step back and when I realized it was going to be more then a few day/week thing, I got busy figuring out how I was going to evolve.

A few months into it, I recognized this opportunity to put my skills to use, so i started flipping homes. As most said i was nuts I knew I was onto something smart because most were in chaos and clueless so going opposite of the pack seemed spot on.

Then I learned all about redemptions, and then wholesaling, and kept on flipping. I kept learning, reaching, adding new skills and tools to the tool belt, evolving over and over again.

I had this motto that I shared when people asked why i was doing what I was doing "because I refuse to participate in a down economy". I said that over and over, day after day, I simply refused to participate in the sh#t side of things. And demanded of myself that I simply make my reality happen, period.

It was amazing times, seriously. I found the best of myself, and I never experienced a recession, I experienced a boom. For me the recession was "elevator music" at best, something in the background my ears heard and brain ignored.
3 Reply
Bob S.
Real Estate Consultant · Cleveland · Member since 2020 · 6k+ posts · 3k+ votes
4y
Bought as many properties as I could. When everyone is selling, I am buying and vice versa,
Good luck to all
0 Reply
Francisco Milan
OP
Gilbert, AZ · Member since 2020 · 94 posts · 26 votes
4y
Quote from @James Hamling:

New home development stopped on a dime, which I was in, so i had to take a big step back and when I realized it was going to be more then a few day/week thing, I got busy figuring out how I was going to evolve.

A few months into it, I recognized this opportunity to put my skills to use, so i started flipping homes. As most said i was nuts I knew I was onto something smart because most were in chaos and clueless so going opposite of the pack seemed spot on.

Then I learned all about redemptions, and then wholesaling, and kept on flipping. I kept learning, reaching, adding new skills and tools to the tool belt, evolving over and over again.

I had this motto that I shared when people asked why i was doing what I was doing "because I refuse to participate in a down economy". I said that over and over, day after day, I simply refused to participate in the sh#t side of things. And demanded of myself that I simply make my reality happen, period.

It was amazing times, seriously. I found the best of myself, and I never experienced a recession, I experienced a boom. For me the recession was "elevator music" at best, something in the background my ears heard and brain ignored.

What an amazing journey it must of been sir, adding skills to become a better investor/agent.
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