Next Economic Crash!!

[Cody Gray]

What does everyone think about the talked about upcoming economic collapse?

Lets say it does happen, how should one take advantage of the market/ foreclosures?

Can someone who took advantage of the last collapse in 07-08 share a little bit of what they did to take advantage of the market to build wealth? What strategy?

[Jim Groves]

Originally posted by @Cody Gray:

What does everyone think about the talked about upcoming economic collapse?

Lets say it does happen, how should one take advantage of the market/ foreclosures?

Can someone who took advantage of the last collapse in 07-08 share a little bit of what they did to take advantage of the market to build wealth? What strategy?

My perspective from someone that tried to navigate and profit from the 07-08 crash:

- Hold lots of liquid assets (i.e. cash) to be in a position to purchase discounted assets.  A lot of people pitched ideas to take advantage of the crisis, but most of those were just pitches. Bank financing was non-existent and most of the real estate professionals were already dealing with their own underwater assets.

- Avoid auctions whenever possible.  This is a tough one as the last downturn was far more orderly and competitive than the early '90's RTC days.  I was surprised at how many bidders there were for assets, and discounts were not as dramatic as one would think.

- Look for assets that are discounted due to lack of investor demand, not lack of tenant demand.  This can apply to any company or product.  Some of the least sexy assets can be the most profitable, simply because they fly under the radar of institutional investors.

There were certainly a lot of people that made money in the past downturn but it was nothing in comparison to the wealth that was transferred in the early 1990's.  Information is more widely available, and technology has created efficiencies that were non-existent 25 years ago.