J Scott - Recession-Proof Real Estate Investing: How to Survive (and Thrive!) During Any Phase of the Economic Cycle

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HOW TO SURVIVE (AND THRIVE!) DURING ANY PHASE OF THE ECONOMIC CYCLE

BY J SCOTT

This publication is protected under the U.S. Copyright Act of 1976 and all other applicable international, federal, state, and local laws, and all rights are reserved, including resale rights: You are not allowed to reproduce, transmit, or sell this book in part or in full without the written permission of the publisher.

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Recession Proof Real Estate Investing

J Scott

Published by BiggerPockets Publishing LLC, Denver, CO
Copyright 2019 by ScottBuilt, LLC
All Rights Reserved.

Publishers Cataloging-in-Publication Data

Names: Scott, J, author.

Title: Recession-proof real estate investing : how to survive (and thrive!) during any phase of the economic cycle / by J Scott.

Description: Includes bibliographical references. | Denver, CO: BiggerPockets Publishing, 2020.

Identifiers: LCCN: 2020935645 | ISBN: 9781947200395 (pbk.) | 9781947200197 (ebook) Subjects: LCSH Real estate investing. | Personal finance. | Investments. | BISAC BUSINESS &ECONOMICS / Economic Conditions | BUSINESS & ECONOMICS / Real Estate / Buying & Selling Homes | BUSINESS & ECONOMICS / Investments & Securities / Real Estate | BUSINESS & ECONOMICS / Real Estate / General | BUSINESS & ECONOMICS / Personal Finance / Investing

Classification: LCC HD1382.5 .S385 2020 | DDC 332.63/24--dc23

Published in the United States of America

Printed in the USA on recycled paper

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Cover Design: Alicia Tatone
Cover Image: Kativ/iStock

For Rookiefor 15 years, you sat by my side as I worked, keeping me company and brightening my day. This is the first project Ive had to complete without you. It wasnt nearly as easy or fun.

I miss you, little girl.

J Scott

Im writing this introduction towards the end of March 2020. Depending when youre reading this, that date may have significant meaning. We are currently about six weeks into the Coronavirus (COVID-19) crisis that has paralyzed the nation, and the world.

As I write this, my familyalong with most others in the United Stateshas been isolated from friends and family for nearly two weeks. Over the past six weeks, I suspect that hundreds of thousands of businesses have been shut down and millions of workers have been furloughed, laid off, or fired. I say suspect because we dont currently have any real economic data since this crisis began.

While were hearing rumors of economic growth being slashed by up to 50 percent for the first quarter of the year, those numbers wont be available for another two weeks. While there is reason to believe that unemployment could be at 10 percent, 20 percent or more, we wont have that data for another two weeks. And, while the stock market is currently down about 30 percent from its peak only a month ago, theres no telling if this is the end to the market shedding its gains or if there is still more to be lost.

For their part, the government is doing its best to contain the crisis, both in a literal sense of containing the virus spread and in the figurative sense of trying to manage the economic ramifications. The Federal Reserve has cut interest rates to near zero percent, there is talk of trillions of dollars being printed and flood into the economy, and even the unprecedented move of sending all Americans a check is looking like it will likely come to fruition in the coming days or weeks.

Ironically, while Im the one writing this book, you are likely in a much better position to know how this saga has played out, even if you are reading this just a few months out from this writing. While it appears that the short-term economic outlook for the countryand most other countriesis dire, the scope and breadth isnt clear. While it feels almost certain that we are about to fall off an economic cliff, its unclear how steep that cliff might be, or how quickly a recovery might come.

Economists are predicting everything from this being a blip on the radar, with a quick recovery and a return to a strong economy, to this being the beginning of the next great depression. Unfortunately, none of us have the foresight to know how long this lock down will last or to what extremes the government is willing to go in order to preserve economic continuity and financial security for millions of Americans that might be living on the fiscal edge.

The reason I am providing this backstory and highlighting the fact that I dont know how this crisis will play out is that the economic conditions we are currently facing are unprecedented. Its just a few weeks into this crisis, and the government has already taken steps that we never could have conceived a month or two ago. And there is no doubt that additional steps will be taken over the next several weeks and months to alleviate the fallout from the economic risks we face.

As you read this book, keep in mind that economics is not like physicsthere are no universal laws that define how markets, people, or even governments must act and react. While we talk about the history of the economy in this country, remember that history is a great predictor of the future, but its not a crystal ball. During this economic crisis, this economic cycle, and all future economic cycles, its possible that we will see action and reaction that has never been seen before.