The way the housing market moves largely depends on the real estate cycle we’re currently in. We all saw this during the 2007 subprime mortgage crisis as overleveraged homeowners saw their properties foreclosed on and later sold to investors who had cash on hand. We’re currently experiencing dramatic demand coupled with low inventory, so are we at the end of the housing market cycle, ready for a recession to knock down this house of cards?
Whether we are or aren’t close to a housing bubble bursting, smart real estate investors are protecting their wealth regardless of what is to come. This is where today’s guest, Doug Lodmell, has gleaming insight. Doug and his team have worked for decades to protect the wealth of real estate investors. This is commonly known as asset protection but can be thought of as simple risk mitigation for the new real estate investor.
Doug has been through expansion, crashes, corrections, recoveries, and everything in between and has seen what a poor asset protection strategy can do to an investor’s portfolio. He drops some knowledge on today’s show around how real estate investors in 2022 can protect themselves from going through a repeat of 2008. His simple, yet undeniably valuable advice could save you not only money but years worth of work you’ve put into real estate investing.
David Greene:
This is the BiggerPockets Podcast Show 592.
Doug Lodmell:
If you’re going to continue to keep high leverage because you want to lock in rates, that’s totally fine. Just offset with more cash, which means you might have to pass on the next deal. Don’t do it. Hold it. Reserve it. It’s hard for real estate people to do this, I swear. I know them really well. They just, “Oh, no, no, I mean, it’s in the bank. It’s not earning anything. I just can’t do it,” but sometimes you have to make that choice.
David Greene:
What’s going on, everyone? It’s David Greene, your host of the BiggerPockets Real Estate Podcast, the best…