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BiggerPockets Real Estate Podcast

How to Invest in Real Estate During a Recession (2025 Update) w/J Scott

BiggerPockets Real Estate Podcast

BiggerPockets

Education, Business, Investing

4.816.5K Ratings

🗓️ 9 May 2025

⏱️ 42 minutes

🧾️ Download transcript

Summary

A recession isn’t a time to panic—it’s a time to build wealth. If you’re listening to this podcast, you’re already multiple steps ahead of the masses that shift their mindset with every news story shouting from the rooftops that a crash, correction, or recession is coming. Savvy investors are sitting, waiting, knowing that if a recession does come, deals usually do, too. Want to build wealth during a recession instead of losing your head? J Scott, author of Recession-Proof Real Estate Investing, is here to show you how. J says there are three things every investor should be doing before a recession to be in the best position possible. If you follow these three, relatively simple, steps, you’ll be ready to buy deals at a steep discount while average Americans miss out on yet another opportunity to invest. This happened in 2008, and many modern investors regret not having the means to buy back then. Plus, J outlines the real estate deals that work best in a recession, whether you’re a buy-and-hold landlord or a flipper/renovator. Some homes have serious risks attached to them during downturns, while others offer wealth-preserving (and building) opportunities. Here’s how to invest in real estate if a 2025 recession hits. In This Episode We Cover The three things every investor must do to prepare for a recession  Time to sell? Why offloading a poorly performing rental now could be a smart move What to do right now if you have rental properties (and want to keep your cash flow going!) The business “cycle” and why we may be at the “peak” before the fall  Building your recession-proof strategy so you DON’T deviate from it when times get tough  And So Much More! Check out more resources from this show on ⁠⁠⁠⁠⁠⁠BiggerPockets.com⁠⁠⁠⁠⁠⁠ and ⁠⁠⁠⁠⁠⁠https://www.biggerpockets.com/blog/real-estate-1119 Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email ⁠⁠⁠⁠⁠⁠[email protected]⁠⁠⁠⁠⁠⁠. Learn more about your ad choices. Visit megaphone.fm/adchoices

Transcript

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0:00.0

This is recession-proof investing 101.

0:03.1

There are a lot of economic indicators right now that are pointing towards a U.S. recession.

0:08.2

So there's a pretty good chance that we're in for some level of economic pain in the coming

0:13.1

months or years.

0:14.2

And unfortunately, there's just nothing you or I or any individual person can do about those

0:20.5

big picture trends. But there are

0:22.4

absolutely moves that you can make right now to protect your investments from the worst

0:27.6

case scenarios of recession. And yeah, you can even profit during an economic downturn if you

0:33.4

know what to do. These types of individual level changes or pivots are totally within your

0:39.6

control. And today, we're going to teach you how to do it.

0:47.6

Hey, everyone, I'm Dave Meyer, head of real estate investing at Bigger Pockets, where we teach

0:51.8

you how to pursue financial freedom through real

0:54.6

estate. Today, we're talking about recession-proof investing, so I had to bring on the guy who

1:00.0

literally wrote an entire book about that topic, Jay Scott. On this podcast, Jay and I are going to

1:06.4

get into a lot, but we're going to focus on the moves that real estate investors can start

1:10.7

making today

1:11.6

to ensure that their assets are protected during recession. And of course, it's great to stack

1:18.6

cash now if you can, but we're also going to talk about what you can do with your outstanding

1:23.3

loans that you may have. And we'll also talk about the potential opportunities that come

1:28.2

during recessions. Because you can buy great properties at great values during a down cycle

1:34.3

if you know where to look, if you know what strategies to consider, and how to analyze the risks.

1:40.5

Personally, I don't think it's really the right time to take big swings on some fringe vacation

...

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