So no investor is going to loan money on a property in cyber currency, when it's possible the money they get back might be 40% less than what they thought it was because of a flash crash at the wrong time.

Gothca  I have lived and been working in real estate through 3 mid level corrections and one Massive that we all went through 08 to 2011.. and each was for a different reason.. and as such  the next will be something we probably have not thought about or what have you.. although in reality as I look at my business and how business has been transacted the last 10 years.so much inventory was bought with cash ( smart people LOL) and lenders finally figured out 100% liar loans were not to bright either ( finally got it cost them trillions but they finally got it)So the only ones I think that are really in any kind of peril in a drop is this new crop of investor who does max leverage and refi to you die and is too aggressive in building a portfolio over short span and does not really have the expeirnce or never lived or worked through a correction and does not have proper reserves to weather a correction.others will be just fine.. so many more investors ( other than the BP got to have max leverage or your an idiot crowd) are in fine shape and so I don't see a big crash coming but no question we correct we slow down..you will always have the community were the major employer fled leaving things not so rosy or the base closing or on the flip side areas like Charleston SC that's just steaming ahead billions upon Billions of dollar flowing in for new jobs and factorys  IE Boeing  Volvo  BMW  Mercedes etc etc. but you rarely hear investors on BP talk about that market because it does not cash flow ( minimum down max leverage) like other mid west markets.. so we will see..

I was finishing up a high end fix & flip in Austin when the market crashed, pretty much lost everything but the market is HOT in the Austin area right now and builders can't keep up with the demand.

Where prices are crashing is where you might focus your attention. 

If your goal is for this to be your gateway into becoming an investor, which a lot of people do, it usually crashes and burns. 

It's great to hear that you see the value in REI even after witnessing the big crash.

Please don’t be fooled…YOU ARE CORRECT…There are too many people WAY…overspending on “ investment” properties….therefore… with mortgage debt too high… there …IS … no cash flow..To be perfectly honest and a little mean…… I am tracking the manes of the mentors and gurus in my town that aren’t raising hell about over spending…When / if the next crash happens, they will be all over the REIA circuit selling foreclosure and short sale courses…And I will be there too… asking open ended questions that lead to no other answer that… THE REIAs and the GURUS were a part of the reason that so many young naive investors went BK.and… yes… if the crash happens… I am locked and loaded.experience in Short Sales.. ( worked …IN… Bank of America’s short sale department… so I KNOW the process from their side of the transaction)killer cashKiller creditkiller Instinct

Are you expecting a crash?

Building is way cheaper than buying, so high returns, and crash-proof investment if appropriately done in emerging cities. 

Going through the last 2008 real estate crash many people went with longer term loans (commercial loans) with pre-payment penalties that were yield maintenance instead of step down pre-pays.