Passive Wealth Show Episodes

Real Estate in a Down Economy: Why It’s Your BEST Investment

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In this episode, the speaker, an experienced investor with over 15 years and 3000 deals under his belt, addresses how to navigate and make money in a down economy. Reflecting on his own start in the 2006 recession, he distinguishes between ‘want-to’ and ‘have-to’ sellers in the real estate market, emphasizing the potential of working with the latter during economic downturns. This principle, he believes, is applicable to all investments. Using Justin Bieber’s 2022 purchase of a Board Ape NFT as a cautionary example, the speaker highlights the risk of ‘want-to’ investments that can depreciate significantly during economic recessions.

What You’ll Learn In The Podcast:

  • Diversify Investments for Stability: Having a diversified portfolio, like passive income from real estate, can provide stability in unpredictable economic conditions.
  • Differentiate Between ‘Want-to’ and ‘Have-to’ Sellers: In any market condition, understanding the motivations behind sellers is crucial. During downturns, targeting ‘have-to’ sellers (those compelled to sell due to pressing life circumstances) can offer more lucrative deals.
  • Principles Apply Across Investment Types: The core principle of identifying motivated sellers or understanding asset motivations isn’t just limited to real estate; it applies to various investments, including digital assets like NFTs.
  • Be Cautious of ‘Want-to’ Investments: As illustrated by the anecdote about Justin Bieber’s NFT purchase, investments that fall into the ‘want-to’ category can be more vulnerable to economic downturns. These assets can drastically depreciate in value when the economy tightens, and discretionary spending decreases.