California - Strategies for an "Up" Real Estate Market?

[Jeffrey Magenes]

Real estate prices are crazy in California! San Francisco, San Gabriel Valley, Irvine, etc. How is everyone taking advantage of these market conditions? Here are some ideas I had below. Feel free to chime in, critique and add yours as well. I'm predicting a recession in the next 2-3 years. Bear in mind, I'm looking to invest, but not lose my shirt along the way, stockpiling cash and opportunistically hopefully picking up deals when the next downturn comes around.

• Crowdfund your next deal - There's a ton of websites out there such as RealtyMogul and Fundrise. Rather than risking your own money. You can be a deal syndicator/operator. I know these guys only co-invest 5%, but make a killing with a 60/40 split and charge management fees, acquisition fees, etc. Their downside risk is almost non-existent, but their upside is unlimited. 
• Short the Real Estate market via ETFs - KB Homes, Standard Pacific, and XHB.
  • This is probably the easiest. The house of cards falls very quickly, if all else fails, you can profit from the huge decline in the bubble we're in (tech sector, etc).
• Partner with Home Owners for high end flips - Has anyone ever heard of RajuSells.com? He's a top real estate agent that partners with wealthy home owners in the South Bay area for high end home flips. 
  
  • Example - A home is valued at $3 million. His neighbor next door just sold for $8 million. I heard Raju will partner with the home owner, invest a $1 million+ in renovations and then list the home for $6-7 million. Raju essentially 2X-3X his money without taking the risk of purchasing the home at $3 million. This only works in an up market.
• Luxury home real estate marketing - Check out RUHM marketing - http://ruhm.com/. They sell the "dream" lifestyle. Thoughts on just pumping the market higher and higher by helping sellers/agents with high end marketing. Get out the DJI drone and create stunning high end marketing material.
• Low interest rates - High price + low interest rate = low price + high interest rate. The monthly payment is still the same. How about assuming current home owners existing mortgages at extremely low interest rates? Is there a way to scale this? Or is there a way to short the notes/bond market?