Recession is coming?

[Mary Jay]

https://www.marketwatch.com/st...

Hi guys,

I was reading this today and it seems that everybody keeps talking how recession is imminent.

So, those who survived last recession, what do you think you did good and what do you think you did bad? And have you survived the recession or had to file for bankruptcy?

I have an acquaintance who kept leveraging before recession, got crashed during recession and now is not leveraging at all, buys his properties for cash and is doing well.

Here are my thoughts:

When recession hits would be good to have an ability to buy more, since assets will be at discounted prices.

May be it makes sense to decrease the leveraged amounts?

For example, I have a lot of equity in my house I live in, (if I dont refi it it will be paid off in 8 years, and my rental will be paid off in 11 years)

However, if I cash out refinance my house, there will be enough of equity to completely pay off my house.

This will increase my buying power, since I can  collect the rent from my paid off rental and put it towards buying more.

Because in recession you want to buy more...

Am I thinking right?

Will you guys please share what you learned from the last recession? What is your plan for this recession that might come?

[Bill B.]

I ignored 12 years of experts saying the crash was coming and kept buying. Then it crashed for almost 2 years and I kept buying. And now they’ve been predicting the next crash for 12 years and I’ve kept buying. Why would you listen to “experts” who don’t invest in real estate? 

If you’re really worried about the next crash you should probably sell your house and start renting, your stocks and put the money in to cash or cds, and start living waaay below your means. You’re not ready to invest in real estate or even stocks yet. 

99% of all experts that have been predicting the next crash for the last 10 years haven’t sold their investments in real estate or the much more “overvalued” stock market. The other 1% still haven’t bought back in from the last crash because the next one was coming in 2010. 

I have yet to hear any one of the big name experts apologize for book after book and interview after interview about hyperinflation, gold going to $10,000/ounce or the stock market crashing 50% for TEN YEARS. Not one. Can you imagine the financial ruin you have suffered if you’ve listened to them? You’ve been destroyed, you may never retire. My dad’s lucky he had a pension as he’s had his entire retirement fund in cash equivalents for 10 years earning about 1%.