Apr 8, 2021
Some of today’s most successful real estate investors cut their teeth during the 2008 recession, and they have a unique understanding of how to tailor their strategies for down markets.
The crash served as the perfect training ground to identify opportunities and potential pitfalls.
What we’re seeing in the market right now is all too familiar. We’re clearly headed for a huge downturn, and we need to prepare by creating models that match the market.
The smartest investors are flocking to the models that give them the most control.
Instead of just being another flipper or wholesaler in the market, you want to be the bank and the person controlling the deals and the properties.
Without control, we’ll end up on the hamster wheel hunting for our next deal. This is where note investing comes in, and it’s the perfect model for this market.
What makes note investing such a great model for people who want more control? How do we get started? In this episode, real estate investor and co-host of Shut Up and Invest, Jorie Aulston shares how he navigated the recession market and emerged on the other side with a great investing model.
Three Things You’ll Learn In This Episode
The biggest mistake people make when the market is high
The number one rule of successful investing is to buy low and sell high. Right now a lot of people are jumping into flips and deals at the height of the market, and breaking this rule in a very dangerous way. This is actually the worst time to buy, and when the market inevitably goes down, a lot of people are in for a rude awakening. Don’t dive into a hot market because you think it’s just going to keep going up.
Why wholesaling doesn’t give us enough control
Wholesaling is a great investing model in certain markets, but it shouldn’t be your sole source of income. If you rely on it too heavily, you’ll end up creating a job, and a transactional business that will always suffer from boom-and-bust cycles. You want to shift from hustling for the next deal, to a model that allows you to have more control and cash flow because that’s what leads to real wealth.
Why note investing is a great tool to have in your business
Many investors turn down certain deals because they don’t fit into a traditional model like flipping or wholesaling, but there’s usually a way to leverage a creative investing model so that a deal can fit into something different. With note investing, you always have another channel to make a deal happen.
Jorie Aulston is a real estate investor and entrepreneur, founder of The Aulston Group, and NA Capital Group, and Co-Host of the podcast Shut Up and Invest. He has 15 years of experience in helping investors achieve their dreams of investing in real estate, and a vast knowledge of several investment strategies.
From long-term buy and hold, to quick-fix and flips and also seller financing and purchasing and selling notes. Jorie has also been an active wholesaler for the last 10 years, and he has done deals in multiple states throughout the U.S.