Lending During a Downturn: What to know?

[Spencer Cornelia]

In 2008, I was a freshman in college and completely ignorant to the real estate world, economy, lending, etc.  During the next few years, the big recession happened and the real estate world was hit hard.  Unfortunately, I only cared about throwing parties, playing baseball, and studying for exams so I missed out on studying the economics of a downturn.

For those who were real estate investors during the last recession and others, what is the lending environment like?

I'm asking selfishly as I am curious how I should position myself as a rehabber/flipper in the event that a downturn begins. But I'd also like to know what to expect out of the buyers in the market. If lending constricts, does that mean investors with less than 5 loan exits won't be able to get loans, or we'll just have lower LTV with higher fees, etc.? Are there the same amount of buyers in the market place? Are there as many transactions taking place, but at just a lower price point?