What goes up must come down, and a number of experts predict an economic recession in the not-so-distant future. What are the current economic trends you need to understand? What would a recession mean for the real estate market? And how can y ou protect yourself from a potential crash?
I recently returned from the Real Estate Guys 15th Annual Summit at Sea, where I had the opportunity to meet several big players in the real estate industry and experience three key ‘aha moments’ surrounding the power of networking, the unsustainable economic trends initiated by our political system, and the spiritual aspect of being an investor.
The Summit at Sea was life-altering for me, and I am eager to share my new insight. Listen in as I examine the current economic landscape and how existing trends may affect the real estate industry down the road. Learn what steps you can take to not only survive a would-be crash, but thrive and prosper despite it.
Key Takeaways
[1:56] The value of networking via conferences, etc.
- We tend to limit ourselves as we reach outside our comfort zone
- You are only one relationship away from making it to the next level (e.g.: Michael Becker’s meteoric ascension from zero to 1,000 units in 12 months)
[3:55] The significance of understanding the political landscape
[4:50] Unsustainable global trends
- Exponential population growth
- Debt
- Oil use
- Deforestation
[5:07] The fallout from the Federal Reserve bailout in 2008
- Printed trillions in response to the recession
- Debt now at $20T, $30T in five years
- Devaluation of the US dollar
[5:42] Exponential trends in growth of debt
- Social Security out of cash in 17 years, Medicare in 11
- $1.5T in college debt, $1T in credit card debt
[6:35] How to respond to this bleak macroeconomic overview
- Educate yourself about the issues
- Consider titles by Kiyosaki, Martenson/Taggart, and Griffin
- ‘You have to see something coming to get out of the way’
[8:34] Doug Duncan’s favorable perspective of the real estate market
- Chief Economist for Fannie Mae forecasts stability of interest rates in 2017 (pending no major policy changes)
- Housing market currently experiencing third largest expansion in US history, yet weakest expansion when inflation-adjusted to reflect income and GDP growth
- Present low housing supply causing prices to rise
- Housing market likely to do well if recession hits
- Interest rates would fall to stimulate economy
- If unemployment stayed under 7%, housing would do reasonably well and rentals would improve
[10:00] Robert Kiyosaki’s approach to the four quadrants
- Mindset comes first – Be, Do, Have
- Spiritual language to describe Employee, Self-Employed, Big Business Owner & Investor
[11:43] The mindsets associated with each of the four quadrants
- Employee – consumed with fear, desire for security
- Self-Employed – issue with control, difficulty delegating
- Big Business Owner – struggle with power, ego
- Investor – not motivated by money/power, truly free
Resources Mentioned
Second Chance for Your Money, Your Life and Our World by Robert Kiyosaki
Prosper: How to Prepare for the Future and Create a World Worth Inheriting by Chris Martenson and Adam Taggart
The Creature from Jekyll Island: A Second Look at the Federal Reserve by G. Edward Griffin
Free eBook: The Secret to Raising Money to Buy Your First Apartment Building
