Being "recession proof" - Page 3 - TigerDroppings.com

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rintintin
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re: Being "recession proof"


So mainly single family home investors looking for appreciation. I'm guessing renters made out pretty well in all of it, considering the people undergoing foreclosures needed other places to live.





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rintintin
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re: Being "recession proof"


Isn't the Atlanta market "booming" again? Do you see the same thing happening there?





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LSURussian
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re: Being "recession proof"


quote:

Isn't the Atlanta market "booming" again?

No.






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Volvagia
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Member since Mar 2006
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re: Being "recession proof"


Diversification.

Or put in a more practical ways, always ensure you have a fluidity of choice. Don't put yourself in a position that a situation will dictate your choice.

For instance, don't put yourself in a position where you have to sell undervalued assets in other to pay an emergent liability






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NC_Tigah
LSU Fan
Member since Sep 2003
51765 posts

re: Being "recession proof"


quote:

Did anyone here get hit hard in real estate?
Was shopping high end coastal real estate last year. Almost made me sick to see the predicament some were in. Several situations where folks paid more for a waterfront lot in 2008 than an identical lot, complete with large house and boat dock, were going for in 2012. Multi-million dollar hits. A few retirees, looking at "can't miss" real estate deals in 2008, lost everything. Very sad.






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Fat Bastard
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re: Being "recession proof"


quote:

Real estate income
Stocks
Ownership in multiple types of business.
Etc


and i will add:

tax liens

futures

private lending






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eelsuee
LSU Fan
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Member since Oct 2004
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re: Being "recession proof"


quote:

You technically only lost money if the stock took a dump and then you sold.
This is a terrible way to view your portfolio. A lot of people believe this and it causes them to make bad moves, like ride a bad stock all the way into the ground believing they haven't actually lost the money yet. If you ask an expert if you should hold or sell a stock that you own, how much you paid for it will not factor into his decision, and it shouldn't.






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rintintin
New Orleans Saints Fan
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re: Being "recession proof"


Well he did say "technically", it doesn't mean he views his portfolio that way.





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eelsuee
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Member since Oct 2004
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re: Being "recession proof"


quote:

Well he did say "technically"
It may be true for tax purposes, as far as investing goes, it is completely wrong.






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GenesChin
Ole Miss Fan
The Promise Land
Member since Feb 2012
11081 posts

re: Being "recession proof"


quote:


I hear stories of people who lost millions in the 2008 crash. Where does this money go? And can it be recovered?


The value of your investment shrinks you don't think of it as money leaving. It is like owning an acre of land then finding out later that it is hazardous land. Your land value disappears because no one wants it

When you have lost a lot of money in the stock market, you have to look at the companies who lost money and ask yourself "is this company still a viable profit making company?" If yes you keep your stock and weather the storm, if not you discard it.

My friend's dad is a big investment broker and he made tens of millions betting on banks to recover when their stock hit near 0 because he believed they wouldn't go bankrupt.


Historically, holding blue chip stocks that have good management and a good balance sheet/business practices will survive recessions as they are not going to go bankrupt







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nelatf
Louisiana Tech Fan
NELA
Member since Jan 2011
1135 posts

re: Being "recession proof"


quote:

Did anyone here get hit hard in real estate?


Personal experience for me - I lost $5,000 in American Mortgage Company. It is trading at $0.0032 per share under 02756814. I learned about "catching a falling knife".

I learned more from that loss than any gain I have ever made. I know some CRE guys in Florida, Georgia and North Carolina that lost EVERYTHING in transitional real estate. Ruined some forever.









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dewster
Maryland Fan
Tennessee
Member since Aug 2006
9056 posts

re: Being "recession proof"


In Feb 2009, I was ready to sell my truck to have something to invest. It's a shame I was pretty much dead in the water at that time.


This post was edited on 7/8 at 10:27 pm


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rintintin
New Orleans Saints Fan
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re: Being "recession proof"


What happened? How were you hit, if you care to elaborate?





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dewster
Maryland Fan
Tennessee
Member since Aug 2006
9056 posts

re: Being "recession proof"


It wasn't my investment strategy so much as being laid off around having to live off my retirement savings to go to grad school and pay off loans.

All I'm saying is that millions of Americans were in no position to double down around that time for various reasons. It wasn't all about emotions or nervousness about the market. You had to be in position to take advantage of the opportunities that present itself when there is blood in the water.

I pulled out at the worst possible time (Jan 2009) and didn't get back in until 2011. Lesson learned....the hard way.



This post was edited on 7/9 at 7:43 am


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tirebiter
LSU Fan
ATL
Member since Oct 2006
5169 posts

re: Being "recession proof"


quote:

Isn't the Atlanta market "booming" again? Do you see the same thing happening there?


Pockets have recovered nicely, then again these areas didn't decline as much and are in better/more desirable areas, people buying 20-30 miles out may never recover as know one wants to live that far out and deal with gas prices and commutes, some of those developments were very poorly planned. Until mortgage rates popped up recently sellers in desirable areas were receiving multiple bids at or above asking price on the first day of listing. Many areas outside of the I-285 perimeter, which became known as the circle of death, are still well below 2006/2007 price levels. We are roughly 8-miles from downtown, bought in 1998 and have put about the same $ amount in renovations in the house as the original purchase price, and, based on recent sales, are fairly accurately down 5% which isn't bad given the level of reno my wife wanted. I would be just as happy in a tiny house with moderate upgrades but go figure.

quote:

Do you see the same thing happening there?


Depends on if people have learned their lesson and what happens with lending. I am buying into another commercial property, it is priced a little over 22% less than it sold for 5-yrs ago. It can be a slog but worth the work. I make a point to not become over-levered, it makes life a lot less complicated and more enjoyable.









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TheDiesel
LSU Fan
Houston via Baton Rouge
Member since Feb 2010
2437 posts

re: Being "recession proof"


quote:

people buying 20-30 miles out may never recover as know one wants to live that far out and deal with gas prices and commutes


I am amazed at how far people in Houston are willing to commute on a daily basis. 20 miles is considered a short commute if you work downtown and live in the suburbs.






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Vols&Shaft83
Tennessee Fan
Member since Dec 2012
13976 posts

re: Being "recession proof"


quote:

 I make a point to not become over-levered, it makes life a lot less complicated and more enjoyable. 


This is my philosophy too. Leverage can be helpful, if it's well managed and a small percentage of overall portfolio. It can also be an albatross even if it is well managed. I've been on the verge of being homeless because of having too much debt and not managing it well. It took years to clean up the mess I made with my own stupidity.

That experience basically made me afraid of debt, because I never want to go through that hell again. When possible, I prefer to only buy real estate without leverage. If I must borrow, (which I haven't done in 2 years) I never borrow more than 20% of the value of my portfolio. Overly cautious perhaps, but I still make plenty of money, and I rest a lot easier.






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tirebiter
LSU Fan
ATL
Member since Oct 2006
5169 posts

re: Being "recession proof"


quote:

20 miles is considered a short commute if you work downtown and live in the suburbs.


If a 20+ mile bumper to bumper drive round trip is 2 hours a day, and someone does that for years then moves considerably closer in with no drop in standard of living and drives maybe 30-mins round trip they will not go back to life in the far outskirts. We never moved out, but plenty of friends did and hated it. I hate traffic, it is what it is, which is life sucking to me and huge waste of time and $ during a year, much less over a life time.

A friend moved back here from Magnolia, TX after talking his wife into moving to the 'burbs again and working near downtown Houston. He said the best thing he has ever done is finding a house 10 minutes from his office, and this was a guy that was driving 45 miles round trip before he left ATL for Houston/Magnolia. Some learn the hard way.






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tirebiter
LSU Fan
ATL
Member since Oct 2006
5169 posts

re: Being "recession proof"


quote:

If I must borrow, (which I haven't done in 2 years) I never borrow more than 20% of the value of my portfolio. Overly cautious perhaps, but I still make plenty of money, and I rest a lot easier.



Once I got to a certain passive income and NW number the desire for excess risk exposure was driven from my system. Reading white papers like "Determinants of Growth in Distribution Portfolios: A non-Gaussian Approach" like this didn't hurt, link is in sidebar:

LINK

I am not scared of debt, just that I like to know I have a way of working out of something on my own terms instead of being dictated to by external people/institutions. Everyone has to start somewhere, but hopefully people learn quick when taking lumps.






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TheDiesel
LSU Fan
Houston via Baton Rouge
Member since Feb 2010
2437 posts

re: Being "recession proof"


quote:

Houston/Magnolia


There is just no way that I would suject myself to that torment every day for years.






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