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#117 How To Invest In Real Estate During A Recession

In this episode, Peter is with his good friends Leti Alto MD and Kenji Asakura MD of SemiRetiredMD. Also, the founders of an amazing course called Zero To Freedom Through Cash Flowing Rentals

During this interview, Leti and Kenji will dial in on the current economy, raging inflation, interest rates, and the real estate bubble and how all of this applies to the rental market. 

Leti shares that “real estate is where you want to be when there is inflation. It’s real property, you have a mortgage rate lower than inflation, and you’re tax efficient.”  

Listen to this episode in full to catch all the insider’s tips from the experts. 


JOIN THE WAITLIST FOR ZERO TO FREEDOM THROUGH CASH FLOWING RENTALS

I want to tell you about my friends Leti and Kenji’s course, Zero to Freedom.

This dynamic physician couple used the strategy of investing in cashflowing rentals to achieve financial freedom in less than 5 years—which is exactly the strategy they teach in their course, Zero to Freedom.

Zero to Freedom is a course for doctors and high-income professionals that guides you, start to finish, through the entire process of finding, selecting, and ultimately purchasing your first rental property…so you can create another stream of (potentially life-changing) income ASAP.

This course is open just twice a year. If you are interested, sign up for the waitlist, to learn if it is fit for you. 

As a bonus, if you end up purchasing the course through PIMD, you will receive a FREE Virtual Pass to PIMDCON 2022.

Click HERE to learn more… 


Now, let’s look at what we discussed in this episode:

  • Comparison of investing through past recessions and the current market.
  • What drives the fear of investing in a recession?
  • How to move past the fear or use it to our advantage. 
  • How to approach buying properties at this time.  
  • How are real estate investors currently viewing inflation? 
  • Where to start if you are ready to invest in real estate

Here’s a breakdown of how this episode unfolds…

[1:36]

Leti & Kenji carry experience of investing through recessions during the past two decades. They talk about their history in investing and how our current market compares to the recessions of the past. 

[4:59]

Fear of investing during a recession is largely driven by stories in the news: job loss, salary cuts, and retirement shifts. These stories in the news can generate fear. Learning to control your fear during a recession is a key to surviving; and learn to look for deals that are out there. Always remember that a recession does not last for a forever.

[6:14]

With interest rates rising rapidly, property values are leveling off. As an investor, Peter asks “How are you approaching buying properties at this time?” Kenji explains that when mortgage rates go up, you can borrow less. Therefore, he advises that you don’t change your criteria for what you will buy. Keep buying good deals and better deals. Insiders tip to keep buying for cash-flow, and have longer terms on your adjustable rate mortgage. 

[10:33]

As an investor, Leti and Kenji talk about real estate inflation as being a big problem, but not to be afraid of how it will affect you. They encourage you to stay ahead of the problem, by ensuring your cash-on-cash return is greater than 10%, force appreciation, and be maximally tax efficient. Real Estate is the place to invest during a recession, as compared to the stock market. 

[13:37]

To start down the road of investing in rental properties, get educated from a source who has the experience and will guide you through the process of purchasing your first rental property. Develop a good strategy. Proximity is power, so be around a community who will help you along in the journey.

 

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