LESSONS LEARNED - What would you do over from the 2008 crisis?

[Josh Stack]

I've posted this in the "Real Estate Success Stories" forum but perhaps its would fit better in the "Real Estate Life Lessons Forum".

There is a ton of talk in the media but also on these forums of the precariousness of our national and global financial structure and the values of assets as currently traded.  Ray Dalio is even our comparing the state of the the economy to the late 1930's.  I also hear on all sorts of podcasts allusions to the 2008 crises and how the guest of the week "lost it all" and has spent the last decade rebuilding but this is rarely if ever delved into deeply.

The question I have been pondering for the last 24 hours is then, if we take it for granted that an economic fall is coming, and that may have some effect on the property markets (prices, rents, etc), what then do we do to protect and position ourselves.  A simple answer may be to have plenty of liquidity and don't over leverage yourself but what then if you are trying to build out a portfolio where your tools to growth are leverage and reducing liquidity?

I would be very interested to hear from long time investors who have weathered the storms either crashing-and-burning and coming out stronger or simply getting through the cycle bruised but not battered.

Having searched for a topic and thread like this one, I don't think there is one quite exploring this aspect of real estate investing where we lay bare all our failures but it would be incredibly instructive to us newbies to learn from those who have gone before and come out the other side weary and with scars to show from the battle.

Hope you will find int in yourself to share so those of us who are new can learn.