A new survey reveals that over half of Americans expect to lose everything in a new recession. Most believe that recession is already here.

While that is tragic for all of those individuals and families, it does create an enormous opportunity of a lifetime for real estate investors to help, and to be well compensated for that.

America Is Going Bankrupt

Big bank failures, and the dollar amounts involved are likely to make the last great recession seem miniscule in comparison.

If the world’s biggest banks can go under so fast, then not only will that have a waterfall effect on other businesses, but most individuals stand little chance of making it.

55% believe they will lose everything in a new recession. Close to 70% believe that recession is already here in 2023. While some at the very top and bottom may be insulated from this, it seems like there are many more who are not in tune with the economy, or do not have a healthy appreciation for just how fragile their financial situation is.

Here are the three main things this means for real estate investors…

Millions Of Motivated Sellers

The US population is estimated at around 336M in 2023. Around 60% of households are homeowners. That suggests at least tens of millions of those individuals who are becoming uber motivated to sell their properties before they lose them.

Some will need to be educated and nurtured through your funnel. Others will require creative solutions. Yet, not even all the banks left standing will be able to buy all of these deals. There is so much opportunity.

Massive Housing Needs

The flip side of this is that all of these tens of millions of households will need somewhere new to go.

Many may have to rent. Many will not be able to due to destroyed credit, and lack of documentation that has now made it harder to rent from all of these corporate landlords than to get a mortgage.

So, there will also be millions needing to buy new homes. As well as other investors looking to load up on supply to meet the booming demand for affordable housing and rentals.

People Need To Make Money

Jobs are being obliterated. Fed monetary policy continues to push toward creating more unemployment to deflate the economy.

Many are losing all of their savings in bank crashes and a tanking stock market or other exotic investments.

This is a great time to build out your own team with the best talent. Including training others how to help you wholesale houses so that you both win.

How can you navigate the 2023 real estate market for success?

The New Year is here. It is likely to be another exciting year in real estate. While some see uncertainty, there are many predictable events and trends coming up. Here’s how to make the most of it.

Planning For The Year Ahead

If you haven’t yet, it’s time to take a week, or at least a long weekend off to really focus on your goals, business plan for the new year, and to get in the right mindset.

The world’s largest asset manager recently proclaimed that central banks are deliberately trying to force a recession. Which will result in a downturn like no other. This is in contrast to the official government data which declares we are already out of the recession.

For real estate investors, and especially real estate wholesalers, it doesn’t really matter. It may influence your offers, and how you remarket properties, and who your buyers are over the next year. Yet, it doesn’t have to impact your goals for deal volume or profits.

It is important to really put yourself in the right mindframe, avoid falling into a place of scarcity. Instead focus on your own goals, and how you will achieve them.

The End Of Year Hangover

It’s quite common to have lackluster data come out as we roll into a new year. It has been the holiday season after all. Don’t be surprised by low numbers. This probably won’t last.

This is a great time to make acquisitions. As well as to really start ramping up, and loading up on your marketing to really stay ahead of the competition and enjoy a flush year.

Tax Refund Season

Something special happens as we roll into February and April. Regardless of what else is going on in the economy out there, much of the population is getting what they see as a windfall in money from the IRS.

For most, this is the only time they can afford to move into a new apartment, or put the down payment on a home.

Be there to help them.

Peak Home Buyer Season

Late spring and summer sees that annual rush of movers. Some are highly motivated to sell. Others are highly motivated to buy. This is the season which usually sees the best life in home values.

Fall

As the nation heads back to school, activity cools off, along with the weather, and listing prices take a seasonal dip. It’s another great time to flood your target markets with purchase offers.

The New Presidential Election Campaign

If recent trends are anything to go by, we can expect this next presidential election to be even more polarizing and dramatized.

For much of the population this may create an enormous amount of stress, pressure, and uncertainty. Again, keep focused on your own goals, keep the big picture in mind, and you’ll be fine. Look for the opportunities it will create.

The vast majority of Americans now fear an impending economic shift for the worse. How is the average person responding with their finances? What are experienced investors doing differently right now?

A New Recession Seems Inevitable

Between rising interest rates, gas prices, shifts in federal monetary policy, sinking stocks, and declining GDP in the first three months of 2022 most believe a new recession is imminent. There is a good chance we are already in one, but the data to show it hasn't been released yet.

According to recent surveys, 81% of American adults fear a recession this year. In fact, more than half already report that they are under financial stress already.

Even more pressing than the loss of their savings and incomes, close to half of those surveyed in the Momentive Poll say their thoughts are consumed by rising prices all of the time. Only 1% do not seem to be thinking about it.

According to respondents, the bulk of financial stress is coming from:

Gas prices

Housing costs

Food costs

Medical costs

How People Are Reacting

According to the data, consumers are already frantically responding to this financial stress by:

Cutting back on dining out

Cutting back on driving

Canceling monthly subscriptions

Canceling vacations

As we saw by the $54B overnight loss for Netflix investors, it is already having a big impact.

Investors

Many individuals are already crying out in desperation over the outlook for their stock accounts and 401ks.

More experienced investors who have been through these times before are adjusting by getting out of stocks, diversifying, choosing more liquid investments, choosing real estate wholesaling over flipping or rentals.

They are looking for assets that will benefit from these changes, investing short term to grow their money faster than inflation, and putting money back in the bank to seize upcoming opportunities in the recession. They are not holding devaluing cash, but know cash will be king when sellers turn desperate.

REI Businesses

Real estate investment businesses led by experienced managers that have been through it before are preparing by building out their infrastructure so they can scale, building databases of sellers, investing in follow up marketing, and readying to buy a lot at discounts.

Summary

The fact that so many fear an imminent recession, and are reacting with their dollars already is likely to bring it about. The financial stress is already mounting, and will directly impact savings and investments. The experienced know exactly how the cycle plays out, and are getting ahead of it, and positioning to benefit and thrive through it.